Independent from Long Beach, California on March 23, 1976 · Page 18
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Independent from Long Beach, California · Page 18

Long Beach, California
Issue Date:
Tuesday, March 23, 1976
Page 18
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8-fr--INDEPENDENT (AM) PRESS-TELEGRAM (PM) uw SMCH, c»m., T«., mrcna, i»» Your father didn't have a crystal ball So how could he tell you that borrowing money and "buying things "on time" would soon become a way of life in most American homes? But today thoughtful people generally do accept the idea of "planned debt!' Of making instalment purchases of major needs at a cost they can afford, including finance charges. Why this turnabout? Simple. Americans find it's worth what it costs - in finance charges to use somebody else's money. So they can enjoy certain things earlier. And not wait till they've saved a bundle. O.K. When should you borrow? When you need a car to get to work. Or to serve as the family's go-fer. When you're starting up a household, or bringing home a new baby. When you need L money for the older kid's college. Or i for books and a soprano sax ' for one who's loaded with brains and talent. When you get clobbered i with doctor and hospital bills. Or lost wages during a strike. Or a huge tax bite. Or other "surprises! 1 When you buy a house. Or add to its value with another bedroom, or a remodeled kitchen. When you can buy a washer/dryer, or a power mower, and save by not needing a laundromat or gardener. When should you not borrow? When your real, unadmitted reason is to live higher on the hog than you can possibly afford. When you're already too deep in debt. And living dangerously, without a couple of months' income saved up for emergencies. When you have to have money for this year's trip to the Bahamas. But you're still paying off on last year's trip to Hawaii. When you're emotionally overspending. Because you're depressed. Or to impress the neighbors. Or get even with somebody. Whatever the reason, there comes the day when you will want to borrow. So you might as well be smart about it. Shopping for a loan. Most people don't do it. Even thrifty souls. Yet there's a wide spread in interest rates, a real chance to save. And it's easier to compare rates now because the law compels lenders to state the Annual Percentage Bate (APR). How do rates vary? In California, small-loan companies normally charge more than banks charge. But don't think all banks are alike. UCB is one of the few to offer simple-interest personal loans. You p'ay interest only for the actual time you have the money. And there's no penalty if you pay off early. Want a lower interest rate? If you can back your loan up with collateral (security), we can offer you a lower interest rate. Because there's less risk. Example: money kept in your UCB savings account is good collateral. And besides, we keep paying 5% interest on your savings. So we suggest you shop around for a loan. Then, when you decide where to get it, we suggest you keep doing business there. It's good business to do your banking where they know you. Shopping for car loans. Most every dealer on Automotive Row will jump at the chance to finance a new or used car. It helps them-close the deal. But you generally pay more for that convenience. Moral: It normally pays to go to the source for money. Like our place. How long a loan should you get? Time costs money. Assuming the same interest rate, whatever you pay in finance charges for a 12-month loan, you'll pay about twice as much for 24 months. Or about three times as much for 36 months. Maybe it's worth the extra cost to lower' your monthly payments. But don't be misled by those smaller payments. You do pay more in the long run.- What kinds of loans do we make? Simple-interest loans, including: Auto loans. Vacation loans. Home-improvement loans. Mobile-home loans. Boat loans. Aircraft loans. Secured loans. Also: Credit- card loans.Balance Plus* loans. Real estate loans. Career credit loans. Small-business loans. We're sort of a money supermarket with most every kind of credit package. So it's likely that we can fix you up with exactly the right, loan, (Savings loans are limited by law in the kinds of loans they can make.) Do we make loans to everybody? Wo. Banks aren't in the giveaway business. We're here to safeguard people's money, and lend it to qualified borrowers at a profit. So before you can borrow money, you have to qualify: show that you have both the ability and intent to pay it back. Your income and debt situation reflect the ability. Your credit history reflects the intent. Both are weighed before we give credit. And that's true anywhere. But wo don't discriminate because you're married or single, male or female. The law now forbids it. And we couldn't agree more. We believe people are people. We welcome your loan application at UCB. But we can't promise in advance to okay it. Fair enough? What happens if you miss a payment? Suppose you run into rough financial weather and can't make a payment on time. Instead of missing a payment - which upsets any lender - come talk to We'll try to help you protect your credit rating. C«««MNG3^--O · Should you or shouldn't you borrow? Like your father, we believe there's much to be said for putting cash on the barrelhead. It's the thrifty way to buy. And plenty of people could avoid headaches by using cash more and loans less. As we tried to show, though, borrowing does make sense at times. And when it's time, we hope you'll look us up. Just come to any of our 260 branches between Crescent City and Calexico. We'll give you good, honest help. ffl H n[UNITED 9 'CALIFORNIA i IBANK

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