A Line of Credit (LOC) is an open-ended loan that can be used for any purpose. It is a revolving loan, similar to a credit card. That is, YOU can tap the line of credit repeatedly and pay the money back repeatedly. It has a maximum limit but no set expiration date.
PERSONAL OR UNSECURED
LINE OF CREDIT
Lower interest and one monthly payment – financial control is within reach.
SECURED LINE OF CREDIT
Discover the perfect credit solution tailored to meet your unique financial needs and goals.
HOME EQUITY LINE OF CREDIT (HELOC)
Borrow up to 80% of your home's equity with automatic CTB payments
When you’re borrowing money, you’ll likely need to make a decision about a secured loan vs. unsecured loan. What’s the difference? Here’s an explanation about choosing a secured LOC vs. unsecured LOC.
A secured LINE-OF-CREDIT is connected to a piece of collateral – something valuable like a car or a home. With a secured LINE-OF-CREDIT, if you don’t repay the loan as you have agreed that collateral can be automatically taken or repossessed. A HOME EQUITY-LINE OF CREDIT or HELOC is the most common type of secured LOC. The money is borrowed against the equity in the home.
An unsecured LINE OF CREDIT** is not protected by any collateral. If you default on the loan, the lender can’t automatically take your property. The most common types of unsecured loan are credit cards, and personal LINES-OF-CREDIT.
Both secured and unsecured lines of credit have advantages over other types of loans. They can be used (or not used) flexibly and repeatedly, with low minimum payments and no demands to pay in full as long as the payments are up to date.
The secured line of credit is clearly the better option if at all possible, as it keeps YOUR costs of borrowing to a minimum.
Welcome to a journey towards achieving financial well-being. These courses are designed to empower you with the knowledge and skills needed to manage your finances effectively, make informed financial decisions, and build a stable financial future.
