What is more convenient for a Payday Loan or a Pledge Loan?

 

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When looking for the ideal financing to buy a car it is good to be able to differentiate the advantages and disadvantages of each one of them and then make the most convenient decision according to our payday financial situation, for this reason, today we are dealing with a topic that interests us. Many of our readers, therefore, are several questions that we receive about whether it is convenient one more a payday loan or a pledge credit . To give an answer, I focus more on the characteristics of the collateral alternative so I can compare with the classic payday loan.

What is a pledge credit?

A pledge credit is that financial service that allows those who hire it to acquire a car immediately and then pay the fees corresponding to the credit that can be processed in different entities such as banks or directly in the concessionaires that provide their own financing or in alliance with some financial

As a relevant feature, it is necessary to say that to access this type of product it is usually necessary to have a certain sum of money to make an initial delivery and that the car remains as a loan guarantee until the total cancellation is concluded. Next, I quote some recommended options in the Argentine market:

 

Are there pledge credits for used cars?

Of the alternatives named as recommended to apply for a pledge , ICBC and Santander allow the financing of the purchase of a used car, however, in the case of Santander, the percentage to be financed will be a maximum of 70%. In contrast, ICBC allows financing a higher percentage, but places the restriction that the car does not exceed eight years old.

Is there a simulator for pledge credits?

Here we begin to notice the first differences between a pledge credit and a traditional payday one, because, for the former there are no simulators. So, the advantage at this point is for the payday cash loans that can be simulated on most of the bank pages and also with the payday credit simulator that will allow you to buy the alternatives of loans that have the most prestigious banking entities in the country, all from a device with an internet connection and without incurring any expense.

Is it good to take out a payday loan for cars?

Although the pledge credit is a product designed exclusively for the purpose of allowing users to purchase a car, it can often be convenient to take out a common payday loan to make the purchase because these are faster approval and have the greatest advantage that the vehicle is the property of the client from the first moment, for that reason, when the amount that he lacks for the purchase is not too big, it is good that he thinks about the possibility of contracting a payday credit.

What is convenient for a payday loan or a pledge?

What is convenient for a payday loan or a pledge?

Answering the question that starts this note, I will say that what suits you between a payday loan and a pledge will depend on your payday situation and short and medium term objectives. As advantages, the pledge credit shows lower interest due to the fact that the car is placed as a pledge and as a disadvantage it exposes the total non-disposition of the car to sell it until the payment of all the installments is concluded. Instead, as we saw, the staff allows faster access and in turn, gives the ability to pay the car cash can get important discounts, but against the game shows higher interest, so, end up returning more money than with a pledge

What is more convenient for a payday loan or a pledge? Now that you know the differences between a pledge credit and a classic payday credit , it is up to you to decide which of the two alternatives is best for you. On the other hand, I want to make two suggestions; The first is to take a look at our article in which we deal specifically with the characteristics of the pledge credits . The second recommendation is that you take advantage of the benefits of being able to compare your options with our simulator.

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