Personal Line Of Credits: Alternative Fast Financing Source

2007-03-08 10:33:40

( Automobiles )



Many lenders offer line of credits usually secured by a mortgage on your home equity. Such line of credits is really a revolving credit; you will get approval for a set amount of credit, which represents the maximum amount of loan at any one time. Once the line of credits has been established, you can start drawing loans without needing to go back every time to obtain approval.

You may be interested in applying for a line of credits to finance a project, to consolidate small debts, or simply to have a ready source of cash. However, you may be hesitant because the transaction would put your home at risk. Or, perhaps you don't own your home.

Innovative lenders have come up with a personal line of credits product that may be the answer to your need for a standby loan line. A personal line of credits is generally an unsecured loan line and, therefore, does not tie up any of your property as collateral for the loan. Under a standard home equity line of credits, the interest you pay is tax-deductible; this benefit will not apply for personal line of credits. However, the latter may offer other advantages.

Personal line of credits is usually available quickly, which is good for your immediate funding needs. Generally, you can apply for such loans on line and you will get quick approvals. You will have to establish an on line bank account to facilitate the transaction, since funds will be immediately credited to it when you draw loans on the approved line of credits. By the same token, you can use this account for on line payments.

Personal line of credits can have lower minimum amounts of a few thousand dollars. The low amounts also enable the lenders to make fast decisions on loan applications, usually within half a business day.


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