It’s time to look at the pros and cons of taking out a personal line of credit. Along with personal loans and installment loans, this is one of our core financial services at Cash Link USA. Your particular financial circumstances dictate which of these can help you the most when you find yourself in need of extra cash.
What is a Personal Line of Credit?
A personal line of credit is a financial resource for borrowers seeking an ongoing funding source, which they pay back at a later time. It’s something you can obtain quickly and is a lot less risky than credit cards. We offer these to our clients in Kansas and Tennessee.
This is not the same as getting a loan in one lump sum of cash. Instead, you receive funding periodically, more akin to credit-based cash flow. It works great for small businesses that just launched and need some cash to last through the early stages before becoming profitable.
Pros & Cons of Utilizing a Personal Line of Credit
These are the typical pros and cons of using credit lines.
- You only accrue interest on whatever money you borrow.
- It’s relatively easy to get one. There aren’t many hassles and restrictions.
- They work great for long-term projects that require a stable funding source.
- If your cash shortage is temporary, credit lines can get you over the hump easily.
- Interest rates are not as high and variable as credit cards.
- Repayment options are pretty flexible.
- You borrow what you need and nothing more.
- You’ll need a decent credit score to qualify.
- This is not a good idea for borrowers in need of long-term money solutions or those who struggle to manage their personal finances.
- Using one too long (or over-utilization) can harm your credit score.
We conclude that the pros outweigh the cons, which is why we promote credit lines so much. No debt solution works for everybody, however. Therefore, there are a couple of other alternatives we suggest as well.
What About Other Loans?
Modern lending comes in many shapes and sizes these days. There are certain debt instruments we do not recommend (such as credit cards) because they leave the borrower with very heavy interest accumulation and other problems. Our other two offerings at cash link USA are personal loans and installment loans.
Personal loans are kind of the opposite of credit lines. Here, you have a more traditional lending tool that gives the borrower a single loan with different lending terms and conditions. This is a good option for customers with lower credit scores in need of long-term financing for various reasons. We’re licensed to offer personal loans in Texas, Kansas, Missouri, Wisconsin, and Tennessee.
Installment loans offer the most structure in terms of repayment. It’s also a lump-sum loan, but here we set the payment schedule when you apply for the loan. You know what you’ll pay each time as soon as you take out the loan. Best of all, you never have to worry about the interest rate fluctuates. Many of our clients use them to make car payments or spread out emergency expenses.
For further reading on the matter, check out this post on the differences between credit lines and installment loans.
Get Fantastic Financial Service and Credit Opportunities with Cash Link USA
We talk to clients all the time who bemoan their difficulties with credit cards and credit limitations in general. That’s why we dedicate our business mission to providing solutions that match borrowers’ specific needs. Our threefold service aim involves transparency, convenience, and financial wellness.
Cash Link USA can vouch for its outstanding customer service commitment with our Excellent rating from more than 3,000 reviewers on Trustpilot. We’re also a #1 Rated Payday Loan Company, according to BloggerLocal.
If you think you’d benefit from obtaining a personal line credit, don’t hesitate to contact us soon to find out more.