What could you afford if you had a little more money in your bank account? Start a long-planned home repairs, go on a family trip, pay for tuition? Very often money may be needed not only for pleasant spending, but also for urgent needs – sudden repair costs, unexpected bills. In such situations, a credit line is a handy type of consumer credit that can be more easily adapted to different living conditions. Find out in our recent blog article what the features of a credit line are and how to use this type of loan for your own use!
About credit lines in simple words
Credit line users have a fixed credit line that serves as a financial cushion and can be used as needed. How much can you borrow? It depends on both the creditor you choose and your financial capacity. For example, a credit line from bank is from 1000 to 12 000 USD, a credit line from a non-bank lender Credit bank is up to 4000 USD.
However, these figures do not mean that any bidder can borrow any amount. The credit line credit limit is set individually, for example, bank’s maximum credit limit is the borrower’s three salaries, but credit line can not exceed 200% of the user’s salary.
Credit bank and other non-bank lenders also set credit limit limits based on the customer’s income level, age and credit history status. Some lenders also have a bad credit line, but can only be used by debtors.
A credit line for individuals works just like a credit line for companies – if you need additional cash, you can withdraw the required amount from your credit line account.
Compared to regular consumer credit, a credit line has many advantages:
- the credit line has lower interest rates;
- interest is charged only on withdrawals;
- many lenders offer a 30-day interest-free period;
- the borrower can make minimal monthly payments or repay the amount spent faster;
- you can borrow again in one credit agreement.
A credit line is especially handy if you do not know how much you will need to complete your plans. And the most enjoyable thing is that you can apply for a credit line online quickly – read on and find out how!
Credit line usage instruction
Regardless of which creditor you choose, the application and use of the credit limit are similar for all lenders. It’s easy to set up a credit line online – here’s what you need to do to get access to a credit line:
- choose a creditor and familiarize yourself with the nuances of borrowing;
- Fill in the application form, stating how much credit you need and other information, including personal data;
- expect notification from a creditor who will approve or reject your application;
- receives confirmation from the creditor that the credit limit has been granted.
That’s it – now that you need additional funds, you can withdraw the necessary funds from your credit line account. The process of withdrawing money from one creditor to another varies, but generally offers the following solutions to clients:
- withdraw money through the mobile app;
- send a request for cash withdrawal to the borrower’s user account;
- request cash withdrawal via email or phone call.
Credit line loans are long-term loans, but in any case, keep in mind that the repayments you make begin 30 days after you withdraw the money. The flexible repayment terms of the credit line make it easier to adjust the loan repayment to the borrower’s financial capabilities, but, like any other loan, the credit line is intended only for persons with adequate financial standing.
In the follow-up to this article, we’ll tell you what financial security measures you need to take to keep your credit line a positive experience!
Financial security techniques for credit line users
A credit line can be handy in a variety of situations, but before applying for this service, be sure to consider whether you can afford the credit. Remember that a credit line is suitable for borrowers with:
- regular income;
- a sufficient level of income;
- a sound financial situation;
- responsible attitude to spending.
Although most lenders set credit limits individually and are commensurate with the borrower’s income level, it is up to you to decide whether you really need the credit line.
To help you make the right choice, ask yourself the following questions before submitting your application:
- is your source of income stable?
- can you afford to make a minimum monthly payment?
- Are you ready to carefully plan your monthly budget at the time of credit line repayment?
- Are you familiar with the details of a credit agreement and understand how cash is paid out and repaid?
Have you answered yes to these questions? Great – then a credit line may be right for you and you can start looking for your lender. We have compiled the best non-bank credit line deals – check them out now!
Online Line of Credit:
We are not a credit institution, but we help potential borrowers find answers to key loan questions, including:
- what companies offer a credit line to individuals;
- what are the main terms of the credit line;
- how a credit line can be used.
If you have sufficient solvency and you qualify for a creditor, you can apply for a credit line and get a loan in less than 30 minutes. Use Comparison Services to find out which credit line is best for you!