UNDERSTANDING LINES OF CREDIT DR. TERESA R. MARTIN
•Events or items that require a large cash outlay, like a wedding, are one use for this funding source.
Sometimes 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 emergency 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
qualification standards than a credit card or mortgage.
•Many banks will charge a maintenanc