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Last updateMon, 23 Jul 2018 5am

Back You are here: Home Loan Did you hear about the latest credit options?!

Did you hear about the latest credit options?!

You are obsolete!!! If the answer is no!

Startled?

 

An alert like this is enough to worry you, right?  This is such an awkward warning, which can kill your mood. 

Each one of us are living in an era of hefty transactions, if not up-to-date, ‘An Obsolete’ notification will hit you on your way! 

So today let’s get updated to delete this obsolete notification! 

Well.., we all are familiar with the term ‘Crediting’, which is kind of a bare necessity today. At some point of our life, we all face its compulsion. As the world is being transformed by up-to-the-minute inventions, even the crediting procedure too hoisted to cop-up with the modern necessities. Everyone is now in a hurry to cater the needs of Gen Y and beyond. Satisfying their need is the priority today. So the crediting facility also advanced to newer forms. Credit card is one among them. It is the common-cum-established form of credit source today. It provides you the needed pecuniary support based on your financial status, which you have to repay with interest rate, later. As the modernisms getting widened every second, latest forms of credit lending avenues also arrived to suit the modern requisites. 

Now, checkout one of the next level credit lending… 

Line of Credit!

The businessmen and entrepreneurs who are rushing for credit can now acquaint with the new avenue of credit.  New gen guys are not so interested in white collar jobs, instead they are looking for the perfect time to kick start their own business. So line of credit is the apt avenue to pave a stronger financial support for fulfilling their dreams. 

Well, what’s the deal of a line of credit? 

It is a flexible loan, which you can avail thru any financial institutions. With a consistent loan, you’re allotted with a certain amount of money, and charged interest on that amount till you reimburse the loan in full. A line of credit however, offers you with a credit limit (like a credit card) that you can scrounge from, while only paying interest on the amount you use. Just like credit cards, lines of credit will uphold a revolving balance if not paid in full after each purchase. 

Are you mixed up with line of credit and credit card? 

Stop scrabbling, here I can help you! 

Credit card    =   Line of credit

•Both permit you to make minimum payments and keep a revolving balance, or pay off the full balance at the end of each month.

•Irrespective of which one you choose to get, it’s all the time a good idea to pay the balance in full and evade high amounts of interest.

•Both of these options have a predetermined limit. This means you can only spend up to a certain amount. 

•Your expenses and activity will be reported to the credit bureaus whether you’re using a credit card or line of credit. 

 

Credit card                                                                                                                              -                                        Line of credit

  • Generally used for everyday purchases and spending 
  • Used more for big-ticket items and business expenses. 
  •  Lesser limit 
  •  Comparatively higher limit than a credit card
  •  Easier to obtain
  •  Harder to obtain
  • Your  credit score and history of borrowing will affect whether you can get a credit card, but not as difficult as getting a line of credit.  
  • Your  credit score and history of borrowing will seriously affect in getting a line of credit you will probably need a very good credit score to get it. 
  •  Credit cards are considered to be unsafe loans, as there is no collateral involved
  • Lines of credit can also be unsafe, but there are safe lines of credit called ‘Home Equity’ Lines of Credit’ which are backed by the cost of your home. 
  •  credit cards usually have 0% APR  opening offers for a stated amount of time
  •  Line of credit will probably not have any such offer
  •  Credit cards also typically come with a rewards program based on the provider
  • It’s rare to find a line of credit with a rewards program 

 

Credit cards and lines of credit come with an extensive range of terms and choices. Knowing the similarities and dissimilarities between these two can save you a lot of time and money.  

So before you start scrounging credit, check out the latest and suitable option for you and you will end-up in the right product for your lifestyle and financial status…

 

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