Which Should You Use To Pay For Costly Projects & Trips This Summer?
Vacations, home improvements, and kids’ camps could be a part of your Summer To-Do List, but how are you going to pay for it all?
We’ve been told to get ahead of our paycheck and save money for emergencies and big purchases. However, if you’re not there yet financially, a low rate credit card or loan is the smart way to pay.
Knowing the differences between a personal loan and a credit card is imperative when it comes to spending and saving. Credit cards are convenient for smaller dollar items and allow you to pay for something over time. A personal loan could be a better option for financing big purchases.
Personal loans could be best for you if:
- You want to receive cash in a lump sum
- You prefer to make fixed monthly payments for a specific amount of time
- You’re looking for fixed interest rates
- You want to have the ability to pay off a loan with no pre-payment penalty
With Credit Cards, remember:
- Look for a card with introductory low rates and reward points (to help you pay for your next vacation)
- Pay the entire balance at the end of the month. Try not to carry over balances to the next month
- Use credit cards for smaller items and purchases
Where to find the best deals
Credit Unions offer some of the lowest interest rates on loans and credit cards and may offer the best chance of being approved. Farmers Insurance Federal Credit Union is happy to help you make the best and wisest choices when it comes to meeting your financial goals. Learn about our low-rate and rewards-points Visa credit cards here.