What kind of credit is right for you?
Your credit options depend on how much you need and for how long
Some larger purchases, like buying a home or car, paying for a wedding or unexpected emergencies, are out of reach for most people, without the help of some kind of loan. Your needs and personal situation will drive the best option for you to ensure you pay as little interest as possible. Before you consider borrowing funds to make a larger purchase, get to know the options available to you and the different benefits and costs of taking out a loan, line of credit or credit card.
With a personal loan, you receive the necessary lump sum, all at once. It has a fixed repayment term and regular, monthly payments. This loan must be paid off in full at the end of the term.
One-off purchases like a car or appliance.
Renovations, weddings or consolidating expensive debt like credit cards. Not only will you reduce your monthly credit card payments you’ll also pay off the whole amount at the term end.
Maximizing your RRSP contributions with RRSP loans.
Mountain View Financial offers personal loans with competitive rates and very flexible repayment terms - you can pay off all or some of the loan at any time, with no penalties.
Lines of credit
These offer a much cheaper way to access revolving credit than credit cards. You can draw funds up to your credit limit, at any time. You only pay interest on what you borrow at any point in time. If you owe nothing, you pay nothing.
Both personal, unsecured lines of credit (usually for smaller amounts and often at higher interest rates) and Home Equity Lines of Credit (where the money is secured against the equity you have in your home), are available.
Varying borrowing needs.
Credit consolidation - you’ll pay far less in interest and you get to decide when you pay off the loan.
Mountain View Financial offers personal lines of credit and HELOCs at competitive rates. You can access funds conveniently through your chequing account payment card. With a Mountain View Financial HELOC, you can get up to 80% of your home’s value, minus current mortgages and liens.
If you have various sources of debt and wish to consolidate into one monthly payment, a mortgage refinance can be a good option.
Most lenders will allow you to borrow up to 80% of the value of your home, including what you already owe.
Paying off high balances of high interest credit cards.
Paying off personal loans, lines of credit and car loans where the interest rate is higher than your mortgage rate.
A credit card can be a good option when you need a revolving amount of credit available to you for unexpected purchases or when money is tight. If you don’t qualify for a line of credit then a credit card may be a good alternative.
Unexpected expenses like car or appliance repairs.
Access to funds when money is tight.
Getting through an expensive time like the holiday season.
Making online purchases.
There are a lot of card options out there. Be sure to do comparison research on cards before selecting one, including considering what kind of rewards program or low interest cards make best sense for you!
If you’d like to discuss which loan or credit option is right for your current circumstances, contact Mountain View Financial today. We’ll help arrange the most cost-efficient way for you to get your hands on the money you need, right now.
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