Credit Cards vs. Holiday Loans: Which One is Right for You?
The holiday season is just around the corner, and with it comes the joy of giving, as well as the stress of managing your finances. You might be wondering about the best way to handle your holiday spending. Should you use a credit card or take out a Holiday Loan? Let's break down the pros and cons of each to help you decide.
Common Trust FCU Mastercard®: Your Everyday Financial Tool
Our low-interest Common Trust FCU Mastercard® is an excellent option for many reasons. It's a revolving line of credit, which means you have instant borrowing power for shopping, travel, or unexpected emergencies. You can use it for all your holiday purchases and enjoy the flexibility it provides.
Low Interest Rate: Our card offers a low interest rate, helping you save on interest charges.
No Application Fee: Applying for our Mastercard is easy and free.
25-Day Grace Period: You have 25 days to pay off your purchases without incurring interest.
Cash Advances: Need some cash? Our Mastercard allows for cash advances.
Card Control: You can protect your card by turning it on or off directly through our Online Banking, an excellent feature for security and peace of mind.
A credit card is a smart choice if you plan to pay off your balance quickly. For example, if you can pay off your holiday spending within a month or two, the 25-day grace period can be a significant advantage. Additionally, you can manage your credit card statements online and opt for paperless billing, which is beneficial for the environment and convenient for you.
Common Trust FCU Holiday Loan: A Fixed Solution for Fixed Expenses
If you have a clear idea of your holiday expenses and need a set amount of money, a holiday loan might be the perfect fit. Our Holiday Loan offers a fixed amount and a structured repayment plan, making it easy to budget.
$2,400 Loan: Our Holiday Loan provides a set amount of money to help you cover your expenses.
12-Month Repayment: You have a full year to repay the loan, which can make monthly payments more manageable.
Low Rate: Rates are as low as 9.99% APR*, giving you a predictable and affordable repayment plan.
A Holiday Loan is a great option if you need a larger, one-time amount of money and want a fixed repayment schedule. It helps you avoid the temptation of adding more debt to a revolving credit card and gives you a clear end date for your loan.
Which One is Right for You?
The best choice depends on your spending habits and financial goals.
Choose the Common Trust FCU Mastercard® if you want a flexible, ongoing line of credit and plan to pay off your balance quickly. It's ideal for smaller, everyday purchases, offering convenience and security.
Opt for a Holiday Loan if you have a specific, larger amount in mind for your holiday expenses and prefer a fixed repayment plan with a clear end date.
No matter which option you choose, Common Trust FCU is here to help you navigate your holiday finances with confidence. Stop by one of our branches or give us a call to discuss your options and find the perfect solution for you!
*APR = Annual Percentage Rate. Member can only have one (1) holiday loan on the books, so any outstanding loan would have to be paid off or refinanced for the difference of what’s owed and $2,400. Actual Rate Subject to Credit Worthiness.