Why a Personal Line of Credit is a Smart Alternative to a Credit Card

Why a Personal Line of Credit is a Smart Alternative to a Credit Card

When you need fast cash for an emergency, a personal line of credit is an alternative to a credit card. Both offer an easy way to borrow money with a set limit.

Both charge interest for using the money and both will require a payment based on the amount that is in use. However, there are differences between the two, as well.

Why a Personal Line of Credit is a Smart Alternative to a Credit Card

A personal line of credit and a credit card are considered revolving credit. That means that once you borrow money on either one of them, the balance changes. When you make payments on either one, the balance is returning to the limit, and you can borrow that back again.

A personal line of credit is a smart alternative to a credit card. People get into debt with credit cards because the lender will see you reach the limit and will then increase the limit. That doesn’t happen with a line of credit after the initial line is set.

Limits and Interest

The lender of the credit card makes money off the interest each month. They are often more than happy to raise your limit assuming you are making regular payments.

The interest rates can be lower than a credit card. Once you run up a credit card, your minimum payments are often only paying on the interest.

Credit card debt is easy to accumulate and spending with it can get out of control. A personal line of credit is a set amount and that is all you can access.

Using Your Money

Accessing your funds is done using an electronic transfer to the account on file. Lines of credit can have an expiration date, but some are also open-ended.

You can use as much money as you like from your personal line of credit but once the money is in use, your limit is lowered by that amount.

A credit card in your wallet is too tempting to use all the time. Paying for lunch, buying new shoes, putting gas on the card, all adds up. This is not how you would use a personal line of credit.

This is a smart alternative to a credit card. You can get better terms and the possibility of deep debt is lower. People tend to treat credit cards like free money and don’t realize that $20, $30 here and there really adds up.

A Personal Line of Credit is a Smart Alternative to a Credit Card

Credit cards are often the more popular choice, but they are also much more expensive in the long run. You are not tempted to use your line of credit on a whim as you do with a credit card.

If you want more information or wish to apply online, you can do so right here at Cash Link USA. Using a personal line of credit instead of a credit card will allow you to use the money constructively.

Frequently Asked Questions

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Quam elementum pulvinar etiam non. Nibh praesent tristique magna sit amet purus. Augue lacus viverra vitae congue eu. Bibendum est ultricies integer quis auctor elit sed. Tortor pretium viverra suspendisse potenti nullam ac tortor. Viverra orci sagittis eu volutpat odio facilisis mauris sit amet. Consectetur a erat nam at lectus urna. Senectus et netus et malesuada fames. Tincidunt arcu non sodales neque sodales ut. Nibh praesent tristique magna sit amet purus gravida quis. Ultrices neque ornare aenean euismod elementum nisi quis. Potenti nullam ac tortor vitae purus faucibus ornare suspendisse. Velit egestas dui id ornare arcu odio ut sem. Amet nisl suscipit adipiscing bibendum est ultricies integer quis auctor. Enim sit amet venenatis urna. Nunc sed blandit libero volutpat sed cras ornare arcu. Pellentesque dignissim enim sit amet venenatis urna.

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