How to Use a Line of Credit to Pay Off Your Debt
If you can’t pay off your debt on your own, a line of credit can help. Using a line of credit to pay off your debt may help reduce your debt burden and improve your financial situation. Let’s take a closer look at how you can reduce your debt with this method.
How do lines of credit work?
A line of credit is similar to a credit card. Once you get approved for this type of loan and receive your funds, you can withdraw as much or as little as you’d like up to a certain credit limit. You’ll only pay interest on the amount you borrow.
Should I use a line of credit to pay off my debt?
There are a few reasons why you may want to get a line of credit to reduce your debt, including:
Consolidate your debt
With a line of credit, you can consolidate your debt. If you go this route, you’ll find it more manageable to pay off what you owe. By getting a line of credit, you’ll have one monthly payment to make instead of multiple payments that are difficult to keep track of.
Get funds quickly
A line of credit can give you access to the funds you need quickly. Depending on the lender you choose, you may get the money in your bank account the same day you apply or within 24 hours of approval.
Borrow what you need up to your set limit
A line of credit is different than other types of loans that provide you with a lump sum of cash upfront. You’ll be able to borrow the money you need when you need it up to your set credit limit.
Qualify without good credit
If you don’t have the best credit, don’t worry. You may be able to qualify for a line of credit without a good credit score. Some lenders may have lenient requirements for their line of credit products.
No need to re-apply
Your line of credit will remain open and available to you at all times, as long as there are still funds available. If you need to take out more funds in the future, you’ll be able to do so without the hassle of reapplying.
How can I get a line of credit to pay off debt?
Here’s how you can obtain a line of credit to reduce your debt:
- Find a lender: There are many lenders that offer lines of credit. Do your research and find a reputable lender that can offer you a favorable interest rate and terms.
- Apply: Depending on the lender you choose, you may be able to apply for a line of credit online within minutes, from the comfort of your own home.
- Review the terms: Once you get approved, carefully read the terms and conditions of your loan. If you have any questions, don’t hesitate to ask the lender.
- Receive your funds: If you decide to move forward with a line of credit, sign the contract, receive your money and repay your loan on time.
Pay off your debt now with an Advance America line of credit
Advance America is pleased to offer lines of credit in select states that can get you the funds you need to pay off your debt. Once you apply and get approved, you’ll be able to withdraw money as long as there are available funds. Best of all, you don’t need good credit to qualify.