Buying big toys doesn’t have to mean big debts
Looking for the best way to finance your next big purchase? Save up for it!
Northwest Community Credit Union, like any other lender, can help you finance just
about any big ticket item—from jet skis to hot tubs. However, most people agree that
the best way to enjoy your next big purchase is to save up for it. Why? Because
not only will you have the satisfaction of truly owning that next item—be it a camper, a
boat, or a motorcycle—but you’ll also enjoy a sense of accomplishment and reward. Of
course, saving up for large purchases is also a great way to decrease debt. Best of
all, taking the time to save lets people avoid spur-of-the-moment buys.
Many items, like new cars, RVs, and homes, are too large a purchase for average people
to buy with cash. Many buyers also find themselves in unplanned situations, which
require financing for large purchases. If you don’t have the chance to save for a
big purchase, make sure you save money with the lowest possible rate on your loan.
Northwest Community offers a variety of consumer loans,
lines of credit,
home equity loans,
and several types of VISA cards.
Are all loans expensive?
Only if you don’t shop around for the best loan or credit card. We are happy to
answer your questions about the real world effects of different interest rates.
What does a loan’s interest rate mean? APR is the annual percentage rate, or cost to
you, on a loan. Remember: a loan will cost you more than the APR if the loan period
is longer than a year.
For example, let’s say you open a store credit card account in order to buy a stereo.
Store cards typically have rates around 22% APR, and in-store financing can be even higher.
If you maintain an average balance of $1,000 on that store’s card for three years, you’d
pay a total of $660 in interest alone. Northwest Community's VISA cards and loan
rates will typically cost you half as much to even one-quarter less than store
cards and finance companies. Don’t be fooled by "90 days, same as cash" offers,
because finance companies normally charge the interest retroactively if you go beyond the
90 days.
Members also find that our rates are almost
always better than banks and credit card companies. Contact us
if you’d like to compare the cost of our loans to other offers.
Shop around and check the classifieds.
Many people will only shop where they have a credit card. That is not the best
way to be a comparison shopper. Our VISA
works anywhere—including the classifieds. How? Our cash advances are instant
and don't have any extra fees. When you compare loans and cards from different
lenders, compare the fine print in addition to the APR. There are often fees for such
things as early payments, cash advances, and other cardholder services. We don't
charge an extra rate or fee for cash advances. That way, there’s nothing to
stop you from saving money if—for example—you see a used boat for sale in the paper.
You can also find repossessed RVs, boats and other vehicles at our
Vehicle Auction.
General rules for smart
shopping
- Compare prices and do your homework
- Consider buying used goods—a "like new" motorcycle won’t suffer immediate
depreciation like a brand new motorcycle
- Make sure your large toy is right for you before you buy it—try renting a hot tub
before you actually buy and install one
- Never buy on impulse
- Remember that the time of year or market conditions can affect the price of your
purchase—it’s better to buy an RV during Winter and sell during Spring
- Save up for purchases when possible
- Shop around for finance rates too—you don’t have to use a store’s chosen finance company
- Take your time and shop around