Line of Credit Loans
If you’re looking for a flexible loan, a line of credit may be a good option. This type of loan lets you borrow as much as you’d like up to your set credit limit. Let’s take a closer look at line of credit loans so you can decide if they’re right for you.
What is a line of credit loan?
A line of credit is an open-ended loan that can allow you to withdraw funds as you need, up to your available limit. You may access the money through bank transfers or cash.
You’ll be given a credit limit for the term of the loan and can spend up to that limit. Just like with a credit card, you’ll make minimum monthly payments and only pay interest on the amount you borrow.
Unsecured vs. secured line of credit loans
A secured line of credit is tied to collateral that you own. A Home Equity Line of Credit (HELOC), for instance, is secured by your house. If you fail to make your loan payments, the lender will have the right to seize your collateral.
An unsecured line of credit does not involve collateral, meaning you can take one out without putting a valuable asset on the line. Typically, unsecured lines of credit will come with higher interest rates than secured lines of credit.
Benefits of getting a line of credit loan
There are several benefits of line of credit loans, including:
Flexible access to cash when needed
With a line of credit loan, you can withdraw as much or as little as you’d like up to a set credit limit. This is great news if you’re unsure of how much money you need to borrow and want some flexibility.
Many lenders that offer line of credit loans will allow you to apply online within minutes. Once you provide some personal and financial information, you can submit your application and wait for a decision.
Instant or quick approval
You won’t have to wait long to get approved for a line of credit loan. Depending on the lender, you can get approved instantly or shortly after you apply. You’ll be able to withdraw funds upon approval.
You don’t need a good credit score
If you don’t have a great credit score, you can still get approved for a line of credit loan. Many lenders will look beyond your credit and consider other factors like your income and employment status. This means that borrowers with poor or fair credit can still get approved.
How to apply for a line of credit loan online
To apply for a line of credit loan online, follow these steps.
1. Compare lenders
There are a variety of lenders that offer line of credit loans. That’s why it’s a good idea to explore all your options. After you find several lenders you like, compare their interest rates, terms, and fees.
2. Choose a line of credit loan
Once you’ve shopped around and compared lenders, choose the right line of credit for your unique situation. Before you commit to it, read the fine print and ask the lender to clarify anything you’re unsure about.
3. Fill out and submit your application
Fill out the application online on the lender’s website. Be prepared to provide personal details like your name, email, and phone number. You may also need to share your financial information such as your income and employment history.
4. Receive your funds
In many cases, your lender will use direct deposit to distribute your funds. Sometimes, however, they may give you cash or a check in store. You can receive your funds shortly after you’ve been approved.
Advance America offers line of credit loans
Advance America offers line of credit loans that can get borrowers flexible funds. You can apply online and get your money quickly, sometimes that same day, even with poor or fair credit. A line of credit loan from us is a great option if you need to borrow money but are unsure of exactly how much you may need.