Peruvians use the credit card for many things and not all of them are correct. Plastics have become that additional help that is used when you have no cash available or when you are trying to cover a somewhat large purchase that will require installment financing. So far there is no problem.
For many the card has become a source of cash
They are used to withdraw money from plastics, even knowing that interest rates are higher for this type of operation than for purchases. But it’s not just about withdrawing cash, but what they do with that money. According to a study by Arellano Marketing for the financial car MAF, many Peruvians withdraw money from the credit card to finish paying for their vehicle.
If you do not understand why this is inappropriate, take note
The card rates are higher than those of a vehicle credit, so you will end up paying more money than if you decide to apply for a car loan. Many have in mind that accessing this credit is very difficult and that is why they prefer to close the deal by withdrawing cash from their plastic. Choose a term that is not so difficult to respect, for example, one year. After that, you can recover your money, increase interest and some extra amount that you have been able to save in that period, and renew for one more year! That way your account will continue to grow. Actually, the qualification to this type of credit is nothing of the other world and, as long as you have the basic requirements to apply for a vehicle loan you will not have any problem.
Remember that if you already have a large part of the money for the car, you can give a high initial fee and once the loan is approved, make prepayments that allow you to settle the debt. Of course, all this will depend on the financial entity you choose.