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Is It Advisable To Buy A Two Wheeler on a Credit Card?

Is It Advisable To Buy A Two Wheeler on a Credit Card?

Are you wondering if you should use your credit card to purchase a two-wheeler? Don’t worry. You aren’t the only one. Most buyers face this dilemma as paying through credit cards has its advantages and disadvantages. So, let us look at a detailed account of when it’s advisable to get a two-wheeler on credit card and when it’s not.

Can I Buy a Bike with a Credit Card in India? 

Many buyers often wonder, ‘Can I buy bike on credit card?’ or ‘Can we buy bike with credit card?’ The answer is YES! 

But it comes with certain conditions. Most dealerships accept credit cards for two-wheeler purchases, though some may have a limit on the transaction value. High-value bikes might require special arrangements or split payments. 

Using a credit card can also allow you to opt for two wheeler on credit card EMI, helping spread the cost over several months instead of paying a lump sum. However, interest rates on standard credit card purchases can be high, so it’s important to check if the EMI option is available and affordable. Always compare your card’s terms before deciding to buy a bike on credit card.

Benefits of Buying a Bike on Credit Card

1. Pay off EMIs quickly

Opting for credit card EMIs to finance a two-wheeler purchase is ideal when you’re looking to repay instalments quickly. Most credit card issuers provide tenures of up to 2 years. Hence, buying a bike on credit card will help you pay off EMIs and clear your dues quickly.

2. Improve your credit score

Did you know that credit bureaus consider your credit card transactions while calculating your CIBIL score? Yes! Besides, your credit card usage does not include interest costs as long as you pay your outstanding bill in full by the due date. This means, if you want to improve your credit score, buying your bike through a credit card can is an excellent solution.

When you make timely credit card EMI payments, you successfully boost your CIBIL score and qualify for future loans easily. However, you must avoid exhausting over 30% of your credit limit. This is because it can negatively impact your CIBIL score.

Drawbacks of Buying a Bike on Credit Card

1. High interest rates

While credit cards can help you repay EMIs quickly, they also incur higher interest rates. Credit card EMIs can entail a 14-18% interest rate, along with processing fees which vary depending on your card issuer and tenure. Besides, with a smaller tenure, you may be required to pay bigger EMIs which can take large chunks from your monthly income.

On the other hand, you can get a two-wheeler loan at significantly lower rates between 10-13%. With Tata Capital, you can avail of bike finance with an attractive rate starting at 10.75%. Moreover, with loan tenures of up to 5 years available, you can comfortably repay your loan with smaller instalments.

2. Get a better loan offer

If you have an excellent CIBIL score, preferably 750 or above, you can qualify for a loan that finances 100% of your purchase costs easily. What’s more, you can even negotiate loan terms to secure more attractive bike loan interest rates and flexible EMI tenures.

Tips to Avoid Credit Score Damage if You Buy a Bike on Credit Card

If you’re wondering, can I buy bike on credit card or can we buy bike with credit card, it’s important to manage your payments carefully to protect your credit score. Opting for a bike on credit card or two wheeler on credit card EMI can be convenient, but mismanagement may hurt your credit history. Follow these tips to stay on track:

  • Pay at least the minimum amount due on time.
  • Avoid maxing out your credit limit.
  • Choose shorter EMI tenures if possible.
  • Keep track of all transactions to prevent missed payments.

Conclusion

As you can see, getting a bike on your credit card has its pros and cons. Your final decision must depend on your repayment capacity, financial fitness, choice of bike, CIBIL score, and more.

If you are looking for bike finance at attractive loan interest rates, come to us at Tata Capital. Get up to 100% funding on your ride with flexible EMI plans and extended tenures. We offer quick and easy processing so that you can bring home your dream bike hassle-free.You can also use our two-wheeler loan EMI calculator to check your monthly instalments and interest amount in advance. So, why wait anymore? Click here to get two-wheeler finance today!

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FAQs

Can I buy a bike with a credit card in India?

 

Yes, you can buy a bike on credit card in India, either by paying the full amount upfront or opting for a two wheeler on credit card EMI, depending on your card’s features.

Is it safe to buy a two-wheeler on credit card EMI?

 

Yes, buying a two wheeler on credit card EMI can be safe if you manage repayments responsibly. Timely payments help avoid interest accumulation and protect your credit score.

Which is better: bike loan or buying bike on credit card EMI?

 

Both options have pros and cons. A two wheeler on credit card EMI may be convenient but could attract higher interest, whereas a bike loan often offers structured repayment and lower rates.

What documents do I need to buy a bike on a credit card?

 

To buy a bike on credit card, you typically need valid identity proof, address proof, income proof, and your credit card details. Some lenders may also request KYC documents for verification.

Does buying a bike with a credit card affect my credit score?

 

Yes, purchasing a bike on credit card can affect your credit score. Timely payments help maintain a good score, while delayed or missed payments may negatively impact your credit history.

Are there hidden charges when buying a bike with credit card EMI?

 

Yes, when opting for a two wheeler on credit card EMI, there can be additional costs like processing fees, interest, or late payment charges. Be sure to check terms to avoid surprises.

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