At INSOUTH Bank we know that our customers have differing financial needs. That’s why we offer a variety of credit options. When life presents emergencies or you just need some extra cash, you have the option of opening a Line of Credit. Lines of Credit are also a good option for making smaller payments as needed. Here are a few facts about the Line of Credit and how it works.
A Line of Credit is a loan. The money is made available for withdrawal in any amount you choose within the credit limit. As much or as little of the money can be withdrawn at a time. Only the amount withdrawn will be repaid. Interest will only accrue on the amount that is withdrawn. If the lender gives you a line of $5,000 and you only borrow $3,000, you only pay back the $3,000 plus interest. Interest rates tend to be lower on Lines of Credit.
Your approval and interest rate will be determined by a few factors. The bank will look at your credit history, what kind of current debt you have and what you have paid off. They’ll look at your financial records and your ability to repay the loan. Remember, you’re borrowing a certain amount of money but the interest will cause your payments to be larger. Before taking a loan, look at your budget and what you’ll be able to repay each month. Make sure you have your bank statements ready to present. And finally, they’ll consider their own willingness and ability to give loans at that time.
If you have further questions about Lines of Credit, contact one of our helpful INSOUTH Bankers today!
Share this Post