什么是信用额度?

Whether you're new to personal finance or just want to brush up on your knowledge, understanding lines of credit could help you make smarter financial decisions. Credit lines are one more tool in your financial arsenal that can help you reach financial 目标s sooner. But if misunderstood, they could cause lasting harm to your finances. When you can identify different credit lines, choosing the best one for your situation could help you avoid common money mistakes.

什么是信用额度?

A line of credit is the maximum dollar amount set by a financial institution from which a qualified borrower can repeatedly withdraw and repay funds without the need to submit a new credit application. Funds are typically made available to the borrower by debit or credit card, 论文检查, 或网上转帐.

Withdrawals are approved if there is money available on the credit line. Payment is only required on the borrowed amount. Finance charges and other fees may be added to the minimum payment amount based on the credit line agreement.

信用额度的类型

个人信用额度 – A line of credit that can be accessed directly from a financial institution. Funds are typically available by cash or check. These credit lines often offer lower 利率 compared to credit cards.

房屋净值信贷额度(HELOC) – A line of credit based on your home's equity. These low-interest rate credit lines use your home as collateral and are often available with higher credit limits compared to credit cards and personal lines of credit. Many lenders offer them with an interest payment only period. Funds are typically available via online transfer, debit card, 论文检查, or cash.

信用卡 – A line of credit that can be used at merchants that accept the card for payment. Some credit card issuers allow cash withdrawals but often at a higher interest rate than the one assigned to merchant purchases.

Cards may be issued as secured or unsecured. Secured credit cards are backed by collateral, typically a deposit equal to the credit limit. Unsecured credit cards do not have this requirement, but do have minimum credit score and income thresholds for approval.

Is a line of credit the same as a typical loan?

A line of credit differs from a typical loan. While both are types of loans that require credit approval, 他们的支出, 利率, 还款条件各不相同. A standard loan may offer a fixed or variable interest rate and is usually disbursed in one lump sum. As soon as the loan is disbursed, interest and other charges accrue. Repayment often begins within 30 - 60 days. You must repay the loan in full according to the loan agreement.

Lines of credit often come with variable 利率. Funds are not disbursed in one lump sum but are given to you whenever you're ready. Payments are only required if you borrow against the credit line. You are only required to pay the amount borrowed on a line of credit.

For example, Larry Loaner takes out a personal loan for $5,000. Since he borrowed the entire amount at once, he will repay the total amount plus interest on a monthly repayment schedule. His friend Becky 借er has a line of credit of $5,000. 她从信用额度中提取了500美元. The following week, she withdraws an additional $1,000 from her credit line. Becky is only responsible for repaying the $1,500加上任何利息, 除非她借了额外的资金.

使用信用额度的好处

The flexibility of a line of credit is one of its most attractive features. When you borrow only what you need while maintaining a high credit limit, it leaves you better prepared for financial emergencies. For example, an unexpected expense could quickly deplete your savings and still leave you short. If you have a line of credit, you could use it to cover the difference and have money left over.

就像所有借来的资金一样, ensure you have a plan to repay the funds quickly to avoid excessive interest charges, 滞纳金, 或者损害你的信用评分.

A credit card could be the line of credit you need to meet financial 目标s. 科罗拉多信用社提供 低利率信用卡 with no annual fee and no balance transfer fee. Use th是ol to take control of your finances.