Frequently Asked Questions About Line of Credit
A line of credit is a loan which you can apply for online. It is similar to a traditional installment loan for the reason that one makes payments on it in regular installments. However, it differs from installment loans in that any repaid amount can be borrowed again, right when one needs funds up to his or her preset credit limit.
Will I Qualify for It?
As long as one is a US citizen aged over 18 years and is employed, and has not defaulted on another loan recently, he or she should qualify for a line of credit (LOC) loan. Lenders do not usually do credit checks with major credit bureaus in the US while approving one for a line of credit. So when you are unsure if you will be eligible for it, apply and you will be notified on the matter soon after submitting the personal line of credit application.
How Much Can One Borrow?
Anywhere from $500 to $25,000 can be borrowed instantly. However, this loan is based on a person’s income, so one can only borrow what they can afford to repay. Of course, one would be allowed and even be encouraged to pay back the loan in its entirety at any time he or she can afford to do so.