Read the latest news about Credit Line in Singapore and the best money saving tips.
What is the purpose of a credit line?
A credit line (also known as line of credit) is a type of unsecured loan that allows you to draw on funds when you need it, at up to 4 times your monthly income. Unlike a personal loan where you lock in your loan amount, tenure and interest rate upfront, a credit line charges interest only on the amount you drew down. You also pay fees for opening and maintaining a credit line.
Why do people use a credit line?
A credit line provides flexibility, especially when you need to borrow money multiple times. Rather than taking up a few different personal loans, a credit line allows you to borrow from the same credit account up until the given credit limit.
Read more: 3 advantages of a credit line and how they can benefit you.
What are the downsides to using a credit line?
A credit line could lead to over-borrowing. There are a couple of situations where a credit line might not be ideal:
In such scenarios, a personal loan could do the trick.
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What is a Credit Line (also known as Line of Credit) and how does it work?
What is the difference between the loan and a line of credit?
What is the limit on your credit line?
How do you repay a line of credit?
Who should choose a personal line of credit?
How much can I borrow from a personal line of credit?
What is the interest rate for a personal line of credit?
Who shouldn't apply for a personal line of credit?
What are the advantages of having a line of credit?
What are some of the limitations of a line of credit?
Should I apply for a personal line of credit for my small business?
Which bank offers the best personal line of credit?
What are the fees incurred when you get a line of credit?
Tips for using a line of credit:
When not to use a line of credit?
What are the eligibility criteria and requirements for getting a line of credit?