Stellar Snippets
A line of credit is a type of loan that provides you with a preset amount of money that you can draw from as needed.
It is a flexible loan that allows you to access money when you need it, up to a certain limit, most often with interest.
You can repay what you borrow from a line of credit immediately or over time in regular minimum payments.
As you repay the money you've withdrawn, you can borrow up to that limit again from the line of credit.
A line of credit gives you access to money “on demand” and helps you with unexpected financial emergencies.
It is typically offered by banks, credit unions, or financial institutions where you need to qualify for a line of credit.
A personal line of credit is a form of revolving credit that operates much like a credit card, even in repayment.
You pay interest only on the funds you borrow, not on the entire line of credit. Lines of credit have fixed durations.
A line of credit can give you extra cash when you experience fluctuations in cash flow. Be responsible though.