ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -For most people, it’s best to avoid using a credit card to pay off your auto loan. Unless you have a high credit limit and you can afford to pay off the balance in full each month, consider your credit card as a last-resort option for making your monthly payment.

Detailed explanation-2: -You can enjoy using something you need as you pay for it. Get something you can’t afford now. If you can’t af-ford to pay cash for a car or other large purchase, using credit allows you to get it now. May get better service on something bought on credit.

Detailed explanation-3: -The short answer is that in theory, yes, you can buy a car with a credit card. But there are a fair amount of additional factors that come into play, so it’s definitely worth getting the long answer, too.

Detailed explanation-4: -In the short-term, paying off your car loan early will impact your credit score-usually by dropping it a few points. Over the long-term, it depends on quite a few factors, including your credit mix and payment history.