Archive for September 2017

Why Take Out a Line of Credit

If you are planning on starting a business or want to renovate your home, a line of credit could help you meet those goals. Typically, these are revolving accounts, which means that you use the money, make a payment and then use the money again if you want. What are some other advantages of using this type of loan?

Lines of Credit May Be Secured or Unsecured

Your loan may be either secured or unsecured depending on what best fits your needs. An unsecured loan is one that can be obtained without the need to put up collateral. Secured loans are backed by equity in a home or some other item of sufficient value. In most cases, secured loans have lower interest rates, and it may be easier for those with lower credit scores to qualify for them.

Lines of Credit May Offer Flexible Repayment Terms

A lender may be willing to offer more flexible loan terms to help an individual repay the credit line in full. For instance, it may be possible to make interest-only payments for several months or years before the entire balance comes due. If you don’t like having debts lingering for a long period of time, you may also be able to pay off the balance early.

Interest May Be Tax Deductible

If you pay interest on a line of credit, it may be possible to deduct that amount from your taxable income. This may result in a significant state or federal tax savings when you file your next return. It may be a good idea to talk with a tax professional if you have any questions about the tax implications of any loans that you have.

Loans May Be Available for Those With Poor Credit

Lenders like will work with you to get a line of credit that helps you get through a short-term financial problem. Most bad credit lenders give borrowers roughly 30 days to repay their debts. However, the exact terms may vary by lender, and borrowers are advised to read the terms of any loan before taking the money.

If you are looking to consolidate debt or make a large purchase, a line of credit may be helpful. Whether you have good, average or bad credit, there may be a loan product available that meets your needs and budget. It may be possible to complete the loan application process online to make it more convenient.

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