This is one of the smartest ways to pay for the holidays. Why? For starters, you set your holiday budget upfront and avoid overspending. You also set yourself up for affordable, predictable monthly payments – your future self will thank you. A loan is repaid in installments, so you know exactly what your payment will be for the life of that loan. And remember, there's no penalty for early payoff!
Home Equity Line of Credit
Unlike a traditional loan, a HELOC is a great option for homeowners to accommodate their holiday budget. There are two main advantages: 1) you get a lower APR than other lines of credit and 2) unlike a traditional loan, you only pay for what you use. If you've been making mortgage payments for a while or own your home free and clear, using your home's equity just makes sense. Why not get a little return on your investment and get yourself funding at a key time of year?
If you prefer a traditional credit card, it's best to get one through your credit union. A Visions card can most likely get you an APR that's more reasonable. Need your card quickly? Visions can issue cards on-demand at any branch. You can even earn rewards like cash back just for gifts, holiday expenses, and everyday purchases.