lower and the payment terms are more
attractive.
• Events or items that require a large
cash outlay, like a wedding, are one
use for this funding source. Some-
times credit cards aren’t accepted by
certain vendors.
• A line of credit can be part of a
bank’s overdraft products. It can be
used to fund quarterly tax payments,
and it can be a great source for emer-
gency funds!
• A credit line can also be used to
fund other projects with uncertain
costs.
3. Lines of credit aren’t perfect.
Like all loans, a line of credit has
some potential downsides.
• Lines of credit have higher interest
rates than traditional secured loans
like mortgages and car loans. Check
with your bank to see just how much
you can save.
• You’ll require excellent credit to
be approved for a line of credit. This
type of borrowing has higher qualifi-
cation standards than a credit card or
mortgage.
• Many banks will charge a mainte-
nance fee, even if you’re not using the
line of credit. These fees are charged
either monthly or annually. In most
cases, the interest isn’t tax deductible.
A line of credit is a lending source
you can use, if it fits your needs. Bor-
rowing too much or making unwise
choices can create the same finan-
cial challenges as any other type of
loan.
Like any loan, it’s important to be
aware of all of the details. Ensure
you understand the repayment
schedule, interest, and fees. And
remember to shop around for the
best deal!
Dr. Teresa R. Martin, Esq. is the
founder of Real Estate Investors As-
sociation of NYC (REIA NYC). REIA
NYC (www.reianyc.org) is a premier
real estate investment association
serving the New York City market-
place. Its primary focus and mission
is “helping our members build, pre-
serve, and harvest multi-generation-
al wealth” in the areas of real estate
investments, business ownership and
personal development.
Connect. Grow. Prosper
(646) 278-6724 | www.REIANYC.org
WISE is a Women-Focused Division of REIA NYC
Become A Catalyst For Transformational Change And Wealth!
We help women achieve their personal and professional goals
through education, development, mentoring, networking, service,
and leadership.
REIA NYC is one of the premier real estate investment associations
serving the New York City marketplace. Our mission is “helping our
members build, preserve and harvest multi-generational wealth.
• The Main Event. Our biggest monthly meeting, featuring local & national
speakers, roundtables, marketing analysis, deal evaluations, and more.
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WISE Is Actively Involved In:
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Strategic networking
Development of business alliances
Supporting new investors in building and expanding businesses
Creating new relationships based on mutual interests
Finding new partners in the field
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