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Good Use For Unsecured Lines Of Credit

Article by Anthony Griswold

Copyright (c) 2008 Anthony Griswold

A lot of borrowers use cash for renovations, vacations, school, or other financial needs turn to equity lines of credit or other types of secured credit lines. These types of lines of credit are popular and relatively easy to obtain, but what if you do not have any equity or own a home to borrow against? If you find yourself in need of a line of credit but do not have any assets for collateral, or do not want to risk the assets you do have, and unsecured line of credit is another option for you.

An unsecured line of credit gives you the cash you need in the timeframe you need just like any other line of credit. Your credit line is based on an amount determined by your credit history, repayment ability, and income and you can use all or part of it as the need arises. The only difference between an unsecured line of credit and a secured one is that you do not have to put up any collateral but will have to pay a higher interest rate.

In order to qualify for an unsecured line of credit you will have to prove that you will be able to repay up to the full amount of the credit line in monthly payments. Your lender will analyze your debt to income level, your credit score and history, your employment history, and may want proof of income and job. If you have a responsible credit history and can afford the monthly payments on the credit line you will probably qualify.

An unsecured line of credit is right for you if you need a credit line but do not have assets to use as collateral. Be careful, however, because it will take more research to find the best deal as they carry higher interest rates than secured credit lines. Talk to the banks in your city to see what the going rate of interest is locally and how much you qualify to be approved for.

National lenders will often have some of the best rates so it is always a good idea to look online for national lender rates. If you cannot find a bank willing to give you an unsecured line of credit you can usually qualify for a credit card, but using a credit card for your cash needs can be risky as many have fees and very high interest. Look into all your options so that you can get the best deal possible on your credit line.

About the Author

Anthony Griswold creates articles about unsecured financing. He has years of experience and direct participation in dealing with unsecured personal and business loans. These articles are meant to be a tool for anyone seeking advice on unsecured financing.http://www.firstamerigo.com/

Related Lines Of Credit Articles

by Laughing Squid

Question by pita_wagner: How do you feel about personal lines of credit? Good or Bad?
I need to pay off a medical bill and my credit card and then have money to get back on track. Are personal lines of credit good for that? I’m only looking to get between 2 and 3 grand. I do not know anything about this so any advice would be much appreciated! Thanks.

Best answer:

Answer by Tony C
Good.. As long as you are discipline. The rates would be mush lower tat a loan and with the LOC you can always use it later. A loan you pay a cretain amount per month until it’s paid off. The LOC you could just pay the minimum payment if you had to for one month

Give your answer to this question below!

by Laughing Squid

Good Use for Unsecured Lines of Credit

Copyright (c) 2008 Anthony Griswold

Many people who need cash for renovations, additions, business expansion, or other financial needs turn to equity lines of credit or other types of secured credit lines. These types of lines of credit are popular and relatively easy to obtain, but what if you do not have any equity or assets to borrow against? If you find yourself in need of a line of credit but do not have any assets for collateral, or do not want to risk the assets you do have, and unsecured line of credit is another option for you.

An unsecured line of credit gives you the funds you need in a short timeframe just like any other line of credit. Your credit line is based on an amount determined by your credit history, repayment ability, and income and you can use all or part of it as the need arises. The major difference between an unsecured line of credit and a secured one is that you do not have to put up valuable property but will have to pay a higher interest rate.

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In order to qualify for an unsecured line of credit you will have to prove that you will be able to repay up to the full amount of the credit line in monthly payments. Your lender will analyze your debt to income level, your credit score and history, your employment history, and may want proof of income and job. If you have a responsible credit history and can afford the monthly payments on the credit line you will probably qualify.

An unsecured line of credit is right for you if you need a credit line but do not have assets to use as collateral. Be careful, however, because it will take more research to find the best deal as they carry higher interest rates than secured credit lines. Talk to the banks in your city to see what the going rate of interest is locally and how much you qualify to be approved for.

National lenders will often have some of the best rates so it is always a good idea to look online for national lender rates. If you cannot find a bank willing to give you an unsecured line of credit you can usually qualify for a credit card, but using a credit card for your cash needs can be risky as many have fees and very high interest. Look into all your options so that you can get the best deal possible on your credit line.

In “Secret History of the Credit Card,” FRONTLINE® and The New York Times join forces to investigate an industry few Americans fully understand. In this one-hour report, correspondent Lowell Bergman uncovers the techniques used by the industry to earn record profits and get consumers to take on more debt. “The almost magical convenience of plastic money is critical to our famously compulsive consumer economy,” Bergman says. “With more than 641 million credit cards in circulation and accounting for an estimated .5 trillion of consumer spending, the US economy has clearly gone plastic.” Millions of American families use their personal, general-purpose credit cards such as Visa, Mastercard, American Express and Discover to make ends meet; credit cards have been a discreet lifeline for families in financial straits. But other consumers, like actor and author Ben Stein, use plastic purely for convenience. While it would appear that Stein — who says he charges a small fortune every month on his credit cards — is the ideal customer, in reality, he is what some in the industry call a “deadbeat.” That’s because he pays his balance in full every month. The industry’s most profitable customers, the ones being sought by creative marketing tactics, are the “revolvers:” the estimated 115 million Americans who carry monthly credit card debt. Ed Yingling, incoming president of the American Bankers Association, tells FRONTLINE that revolvers are “the sweet spot” of the banking …