Allows you to withdraw funds whenever you want (up to an agreed limit) without reapplying.
No fee for additional withdrawals, no early repayment fee and no exit fee.
The Get Set personal loan is a convenient and reusable loan without an expiry date.
The Get Set personal loan is a convenient and reusable loan without an expiry date. It allows you to withdraw funds whenever you want (up to an agreed limit) without reapplying.
Dealing with your finances effectively means knowing what options are open to you, and understanding what will work best in your particular situation. When it comes to borrowing money or accessing credit, there are numerous options available, including lines of credit.
To help you work out whether a line of credit is right for you, let’s take a look at the ins and outs of lines of credit, comparing this option to the various other lending products out there. Then it’s simply a matter of using Credit World to compare the options – and find the best one for you!
Sometimes described as a revolving account, a line of credit provides borrowers with access to an agreed-upon sum of money, which they can use for pretty much anything and access whenever they like. From home improvements to overseas vacations, a line of credit can make borrowing easier, especially when the amount required is not yet known.
When creating a line of credit agreement, lenders will set a total credit limit, with certain stipulations that the borrower must abide by. This might involve making certain minimum repayments, or it may simply require the total amount to be repaid by a certain date, with interest and fees repaid along the way.
When it comes to credit options, the line of credit is often popular, as the borrower only pays interest on the amount borrowed. So, even if the line of credit provides access to a total of $100,000, if just $20,000 has been withdrawn, the borrower will only pay interest on that amount.
A line of credit may be unsecured, with no form of collateral provided, or alternatively, it could be secured against the borrower’s home. This can be a popular option for homeowners, as it can provide them with access to credit at a lower rate of interest found elsewhere, by using equity in their home as security.
Before applying for any form of credit, it’s a good idea to find out as much as possible about the options available, to then compare them side-by-side.
This flexibility also applies to repayments. With a personal loan, you will usually repay equal amounts on a regular schedule until the loan is paid off. With a line of credit, you may have minimum repayments to make, or you may simply be required to repay the total amount by a given date.
It’s worth bearing in mind that some borrowers may like this flexibility, while others may find it harder to repay their debt if they don’t have a regular repayment schedule to stick to.
Weighing up the advantages and disadvantages of the various types of loans out there can also help you to make the best decision.
As with any lending product, there are various ways borrowers can improve their chances of getting approved.
Successfully dealing with a line of credit means being smart with the money you borrow, while also making sure you don’t take out more than you can pay back. You may want to set up regular repayments, so you don’t get stuck with a large amount that you struggle to repay.
Always keep on top of the money you are taking out, and try to stick to the budget you set up when you made the application. Be especially careful if the line of credit is secured against your home, and keep lines of communication open with your lender if you feel you’re getting into trouble.
With that in mind, it’s time to compare the options! Check out Credit World to find lines of credit from a variety of providers, comparing features, fees and interest rates side-by-side. Easy!