The Benefits of Opting for a Personal Line of Credit
The Benefits of Opting for a Personal Line of Credit
As with all other personal finance products out there, there are pros that come with drawing a line of credit, such as the following.
Flexibility
The main benefit of choosing a personal line of credit is the flexibility it offers. There are usually no restrictions with regards to how one can use the available funds. One can take out as little as or as much as they want and right when they want it.
Financial Gap Filler
A line of credit (LOC) may be a great financial tool to fill the gaps for people whose income is mostly commission-based. One can tap into his or her line of credit, and in between paycheck dates, rather than resorting to other potentially more expensive options, in order to pay bills and other costs, and then repay come payday.
Rinse and Repeat
Provided that one repays the funds, he or she may be able to use the line of credit again and as frequently as they wish. For instance, say, you draw $3,000 and use it to pay off a hefty bill. After you pay it back, you could access $3,000 again and continue to do so for as long as your line of credit account remains active.
