The better way to pay: Ready Loan or credit card?

December 20, 2023
Car broken down

You’ve tried repair calls and cleaning the vent, but you’re growing tired of pulling wet towels out of the clothes dryer after running it more than once. The time has come to replace it, but you’re really trying to avoid dipping into your savings right now.

What’s the best way to finance an appliance purchase — or another big-ticket item? At UBT, we have two great options — a credit card or our Ready Loan program. Let’s explore the benefits of both options so you can make the best decision when the time arrives for your next big-money purchase.

What’s a Ready Loan?

UBT’s Ready Loan program offers unsecured personal loans that you can use for big purchases (like replacing a decades-old dryer). No collateral is required; your good credit is all the security necessary. Your income and credit rating determine how much you can borrow.

The bonus features of a Ready Loan are competitive rates, no prepayment penalties, and up to 45 days until your first payment is due. You’ll also have a friendly, helpful member of our team to help you get all set up and so you can get your funds hassle-free.

Credit cards offer simplicity

Credit cards are simple to use because your credit limit is established, and if your spending stays within that limit, it’s as simple as the swipe of a card to pay for purchases. You will be billed for a minimum payment, which will typically be calculated based on the credit card’s outstanding balance. If you make your minimum payment on time every month, you won’t incur extra fees. (You will, however, be charged interest if you do not pay your balance in full each month, so it’s always a good money move to pay more than the minimum payment.)

Which is the better option?

There are positives to both options, so your choice of which one to go with will depend on your unique situation. Let’s review some positives that might help you decide.

  • UBT credit cards have rewards. With a UBT credit card, you can earn 1 point per $1 spent, and redeem your points for cash back, travel, gift cards, merchandise, and more.
  • Ready Loan rates are competitive. We aim to give you the best bang for your buck — and you can even earn discounts off your interest rate if you get set up for automatic payments from a UBT checking or savings account.
  • Credit cards might be more convenient. Credit cards are useful when you are making an urgent purchase and need a means of payment on hand right away. Swipe it and go!
  • Ready Loan terms are satisfactory. Ready Loan repayment terms may be more favorable than a credit card when it comes to carrying a large balance that you need to pay off over time. A Ready Loan might also be able to provide you with a larger lump sum.

We’re here to help

Whichever option you choose for your next big purchase — whether it’s a Ready Loan or credit card —don’t hesitate to reach out to a member of our team for help. We have helpful, friendly folks who can answer your questions, assist you with getting started, and provide exemplary customer service for either product.

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Learning Center articles, guides, blogs, podcasts, and videos are for informational purposes only and are not an advertisement for a product or service. The accuracy and completeness is not guaranteed and does not constitute legal or tax advice. Please consult with your own tax, legal, and financial advisors.