Credit Card Vs. Innisfil Car Title Loans: Which is Better? - Instant Loans Canada

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Credit Card Vs. Innisfil Car Title Loans: Which is Better?

May 05, 2013

Many people are now familiar with financing services like credit cards and car title loans. A lot of us have availed of these services because we can’t avoid being short on cash at times. And these financial aids are very useful during cash draining times.

Getting To Know Credit Cards

Credit cards are the modern cash. Only those with good credit status and favourable employment record can avail of a credit card. With credit cards, you can shop around even without cash. This is a form of debt which you need to pay monthly. That being, you must be aware that credit cards carry with high rate of interest. Interest rates vary among credit card companies. There are those who offer lower interests rates compared to others so you must choose the company well.

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Apart from the interest rates, credit cards come with credit limits. The limit depends upon your financial capacity. Those with higher salaries have higher credit limits, of course. When a borrower goes beyond his or her credit limit, additional charges must be paid apart from the interest rate. Sometimes, there are also penalty fees that must be settled.

Despite these facts, there are still people who would avail of credit cards. The reason is because they are able to shop and own what they want without worry and without guilt. Even if they can’t afford a thing at the moment, credit cards make it possible for one to own it. Shopping is easy with credit cards. The worry, guilt and stress only come in the moment you are given your due bills.

Getting To Know Car Title Loans

Innisfil car title loans are financial solutions available to people who have a clean title of their vehicle. This is security loan which is ensured upon the equity of your vehicle. As long as you have a vehicle you can avail of a car title loan.

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Car title loans are short-term loans and just like credit cards, they come with interest. These loans are designated for emergency use only and not just for shopping unlike credit cards. Also, unlike credit cards car title loans are approved even to those with bad credit.

Which Is Better?

If we examine it closely, it is clear that credit cards give more financial freedom to the borrower than car title loans. This is because credit cards are not secured. Hence, you can just freely shop anything you want with nothing stopping you because you won’t lose anything precious. But with car title loans, you run the risk of losing your vehicle the moment you default in payment. However, this does not make the credit cards much better than car title loans. Reality-wise, Innisfil car title loans are better because it guards your spending habits. Hence, you only spend for what you really need most and not splurge on useless things which is what you most likely would do with credit cards.