Encountering obstacles when laying the groundwork for your most awaited occasion is the least you want to happen. Picture yourself in the middle of planning for your wedding day or your next travel destination and finding out that your funds are limited. You would most certainly feel a lot of tension as you don’t want to feel humiliated in front of your family and friends who have blocked that specific day to be with you.
Do not fret as there is an answer to that dilemma you are currently facing. Get yourself a personal line of credit. Do not mistake this for a personal loan as they are two different aspects with different standards. To make it simple, a personal line of credit is a kind of loan wherein you can specify the exact amount of money you want to borrow with varying interest loan rates, whereas in a personal loan, the rate of the loan is constant.
Let us now discuss in detail what you can gain from a personal line of credit versus some of its disadvantages.
Personal Line of Credit: Benefits
For every loan you make there is a corresponding interest, but the good news is with this type of credit, there is no need to make a full payment of loan interest rate. This makes life easier for borrowers because they can pay it by following a payment scheme that is easy on the budget. In addition to that, when your current salary is not enough, the credit line can be utilized in payment for your monthly charges. This helps ensure borrowers that they can avoid arrears that can be acquired in the long run if a sensible approach is not followed.
Another advantage is the fast turnaround time for credit approval. In just a few days, you can have a peace of mind because you will be ready to welcome the funds to augment your special day’s expenses.
In contrast, a home equity line of credit (HELOC) approval usually takes months to get approved, making it hard to search for another option most especially if there is a time constraint. Having a personal credit line is beneficial not only because it makes impulse buying a little less frequent compared to credit card cash advances. This is because the lender puts forward a good plan to always have a good credit score.
Personal Line of Credit: Drawbacks
Losing money can hit us hard just like when lightning strikes as we never know when that time will come. A personal line of credit also lean on the downside for the impulse buyer just as it can benefit them. Overspending must be put to a halt if ever there is a schedule for payment which the overspending borrower usually fails to pay.
In instances where you applied for this kind of credit line, and the need is urgent, there would be a hitch. You may never get approval for the loan if your previous credit line suffered from non-payment. A much-awaited approval would never become possible if your income has lessened as well.
Bottom line is, whether you are applying for a credit line or not, you should take into consideration the kind of spender or payer you are.
Thinking about getting a personal line of credit? See more at www.personallineof.credit.
Everything has its pros and cons and we tell you about the good and the bad of personal lines of credit. See more at www.personallineof.credit so you can make an informed decision.