Bills, unfortunately, are a fact of life. But for many Americans, they’re a detail that can overwhelm their finances. When faced with surprise auto repairs, appliance renovations, and unexpected charges on regular bills, a limited budget can fail spectacularly. And if you’re like 63% of the population, you don’t have the savings to bail you out. Financial assistance, like personal lines of credit, becomes a necessity in order to make ends meet.
Needing one is no failure on your part. Sometimes fate orchestrates an unlucky stretch wherein charge upon charge, bill upon bill, can accumulate at odds with your pay schedule. Though you can feel disappointed in yourself for not having the finances to cover these expenses on your own, that’s exactly what a line of credit is for. It’s meant to act as a security net for when you can’t cover basic necessities.
This particular financial product can be your ace in the hole when a sudden medical bill, repair, or other short-term financial obligation surprises your budget. Given in one lump sum, you can withdraw against its total whenever you have to pay for something in amounts that suits your needs. While other small dollar loans will accrue interest as soon as you receive it, a line of credit works differently. If you let it sit, untouched, in your account, no additional fees are applied. This makes it the ideal financial product for those individuals who wish to prepare for the future.
It’s only when you start withdrawing advances that interest starts accumulating, and this number is based on the amount that you used – not the credit in total. Once you’ve started to use your line, you need not worry about repaying the amount that you’ve used in its entirety; only a minimum payment is needed. This charge will differ from lender to lender, as each company applies their own fees and finance charges to these payments.
The size of these fees is determined by the state you live in, as each state has implemented laws that regulate these financial products. If you live in Kansas, Maryland, or Missouri, speak with a professional from MoneyKey to learn about the rules and regulations regarding credit. As financial experts at a state licensed lender, these representatives can answer any of your questions regarding lines of credit. Open up a new tab to discover your options for a line of credit loan from MoneyKey and read up on their rates and terms on your own time.
Not all lines of credit are made with your circumstances in mind, so it’s important you research the details behind a financial product. Take the time to understand the full rates, terms, and conditions of any credit before you apply. It’s the only way to find out if it’s right for you. Once you find the right line of credit, it’s a practical addition to your budget that will help you when future financial burdens come along.