There are plenty of ways to borrow money, but each has its own advantages and snags. Your choices may vary and are not limited to the following loans, however, each of these meets a particular need.
The Options
A Home Equity Credit Line allows you to borrow cash based on the equity you have built into your home. A line of credit can be drawn against as you need it, so you only pay interest on the amount you’re utilizing. Interest paid may qualify for a tax deduction.
Credit Cards with a low introductory or fixed rates offer savings when you transfer balances from higher-rate cards or make major purchases.
Vehicle Loans make it possible to purchase a vehicle outright. Generally, you will have a regular monthly payment for a specific period, possibly up to 72 months depending on the institution.
Best Use
A Home Equity credit line is a smart use of credit to pay off high-rate credit cards, pay tuition, purchase a car and for home improvements. Not only can you plan major purchases wisely, but you’ll probably save on the interest, too.
If you’re lucky, you will rarely have to “borrow” against a credit card. However, unexpected expenses that can’t be funded from savings do pop up; a fridge that refuses to chill or a furnace that has made its final blast. Credit cards offer the convenience of buying big-ticket items you can pay off in a few months without applying for special financing.
Vehicle purchase financing gives you unlimited mileage, no restrictions on fixing dents and dings, and pride of ownership. Made on the most favorable terms, you can negotiate for a vehicle that will last longer than the loan.
When you have specific borrowing needs, be sure to contact the Credit Union to discuss what options best fit your situation. We have a variety of loans with great rates, flexible terms, convenient access and a staff who’s happy to help you! Call the Credit Union today!
