Personal line of credit
If you are trying to manage a purchase and you aren’t quite clear of the overall scope of the costs, then a personal line of credit could be an ideal solution. How does a line of credit work? A line of credit, like a credit card, is an unsecured revolving credit line, with a credit-line limit and usually a variable interest rate.
It is suited for ongoing expenses, such as a home repair project. You pay interest only on the portion of the personal line of credit that you use.
Personal lines of credit are normally used for…
- Home improvement projects
- Emergency situations
- Supplementing irregular incomes