Holidays are a time for friends, family, food and conveying thanks. Your wallet, on the other hand, might not be happy with you. The average Canadian spends approximately 800 dollars on holiday presents every year and this does not include things like filling up the tank, the grocery bill and festive parties.
Before you use your credit card, have you considered applying for a some cash back to help with holiday bills? You’re probably thinking to yourself: why should I look for cash back with perhaps a car loan when my credit card can help me. There are benefits of using a credit card: earning points and travel rewards are some of them. However, when it comes to your money and holiday debt, here’s why we recommend a car loan and some cash back.
1. You won’t be welcoming the new year with tears at the sight of your credit card bill
When the holidays come into the picture, humans tend to use up everything, including spending. However, kicking off the new year with a maxed-out credit card is not good. If you already have outstanding balances on your credit card, you might be fighting with long-term financial repercussions from holiday spending for months.
Applying for a car loan with some cash back might be a smarter option for people who struggle to pay back their credit card in full each month. Lower interest rates on a car loan means you pay less for borrowed money.
2. You pay to “just throw it on credit”
A recent study claims that 40 per cent of Canadians can’t pay off their credit card in full every month. As a result, Canadians who put their holiday payments on credit are drowning in interest fees. As credit card debt is revolving, it’s not easy to pay your card in full when you have access to it 24/7.
A car loan is not a form of revolving credit, which means once you’ve paid back the debt, you don’t have access to it anymore. Given this, they can be great for people who are trying to budget and better organize money. Once you’re approved for a car loan, the interest rate, borrowing period and repayment terms are decided. Additionally, ca loans often have lower interest rates than most credit cards.
3. Car loans are available to everyone
Car loans aren’t just available to Canadians with good credit. It’s easy to get a fast approval for a secure and low interest rate car loan, even if you have poor or no credit history.
Therefore, if you are looking to ring in the new year with some good credit and a vehicle, a car loan should be your best bet. And, the cash back that comes along with it will help you feel comfortable during the holidays. Visit Canada Auto Experts or call 1-855-550-5565 to get approved today!