Credit line cards are given with a line of credit or a credit line. In this case, you have a pre-approved amount of money, and you need to only pay interest on the amount you utilize. Direct cash can also be borrowed from credit line cards.
There are multiple benefits of a credit line card. Here we will discuss their advantages and see how they are better than other similar credit products.
The benefits of a credit line card are manifold. Let’s look at them one by one -
Unlike regular credit cards, you don’t have to pay a joining fee or an annual fee. This works more like a loan, which is kept in reserve for you to use.
Your interest rates depend on multiple factors like the amount borrowed, your credit score, income, job type, etc. Even then, credit lines have lower interest rates as compared to credit cards or personal loans.
The credit limit in the case of credit lines is higher than that of general credit cards. However, this also depends on your creditworthiness and other factors.
You can also borrow 100% of your credit limit in cash, which cannot be done in the case of credit cards.
A credit line can be used for an extended period of time. When you borrow and pay back part of your pre-approved amount, the whole amount is again available to be borrowed. In this way, you can use it for years.
You can repay funds in parts or as a lump sum. You have a lot of flexibility to repay the funds in the way that is most comfortable for you.
When you repay parts of your line of credit properly, the lender may also extend options to top up the limit.
There are no restrictions on what the funds can be used for. In this criteria, it is very much like a personal loan which can be used for anything from weddings, home renovation, business, or trips.
As a line of credit involves repeated borrowing and repaying within a said available limit, it is great to build your credit history. If you keep your repayments on time, you come off as a responsible borrower.
You don’t have to pay any fee to close your line of credit. You can close it whenever your requirement ends.
Experience Rewards with Every Swipe
Just like any other credit product, you need to meet certain eligibility criteria and submit some documents to apply for a credit line. You can apply for a line of credit both online and offline.
It has advantages over credit cards and personal loans, but in the end, its usefulness depends on your requirements. Most top banks and online lenders offer lines of credit and credit line cards. Read our other articles on credit lines to know more about them.
Credit Line Article
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