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.
What are the tenures and maximum APR for each loan?
|Credit Line||Min. Repayment||Max. Repayment||Max. APR||Total Loan (Based on S$10k across 1 year)|
|HSBC Personal Line of Credit||1 year||5 years||18%||S$11,850|
|UOB CashPlus||1 year||5 years||23%||S$12,400|
|Maybank CreditAble||1 year||5 years||20.12%||S$10,900|
|DBS Cashline||1 year||5 years||32.90%||S$12,980|
|OCBC EasiCredit||1 year||5 years||32.90%||S$12,980|
|Citibank Ready Credit||1 year||5 years||21.89%||S$12,095|