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I take a Credit Line over Credit Card

New Member

I take a Credit Line over Credit Card

Again this is a personal choice that i do find to be much better having a Credit Line than having a regular Credit Card.  I know the convenience of using the card but its that same convenience that makes it easy to make useless purchases on a credit card...

 

My credit line has been at  much lower interest rate,  in order to use it, i have to do an online transfer to checking account and the whole process while seemless,  promotes a better usage than a credit card..   I think am done with credit card and i can always get a low interest loan incase i need more... with these guys...https://www.sofi.com/refer/148/36200

 

Personal Loan Rates
4.74% APR2 - 10.79% APR2
Variable Interest Rate Range
5.95% APR2 - 12.49% APR2
Fixed Interest Rate Range

Message 1 of 5
4 REPLIES
Super Contributor

Re: I take a Credit Line over Credit Card

If you can get those lowest rates, it's a good APR.

 

The thing about credit cards, however: Many people here look for other advantages besides APR, such as earning cash back, getting travel perks and / or travel points. Used in a PIF mode, a CC has zero interest cost for up to 45 days. There are Balance Transfer cards that end up with lower rates to borrow than even the rates above. Credit cards provide a level of insulation of your cash on hand from fraud risks. In order to use the LOC you have to route that cash through your debit card. Slightly more risky than a CC transaction.

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5 / 24 counting down to 1 Nov 2017... wait I guess it's 18 Dec 2017 to get 4/24
Message 2 of 5
Valued Contributor

Re: I take a Credit Line over Credit Card


jsengendo wrote:

Again this is a personal choice that i do find to be much better having a Credit Line than having a regular Credit Card.  I know the convenience of using the card but its that same convenience that makes it easy to make useless purchases on a credit card...

 

My credit line has been at  much lower interest rate,  in order to use it, i have to do an online transfer to checking account and the whole process while seemless,  promotes a better usage than a credit card..   I think am done with credit card and i can always get a low interest loan incase i need more... with these guys.. (link removed)

 

Personal Loan Rates
4.74% APR2 - 10.79% APR2
Variable Interest Rate Range
5.95% APR2 - 12.49% APR2
Fixed Interest Rate Range


Credit lines are fine but generally much higher rates than credit cards IF you use a credit card correctly. Many cards offer balance transfers at 12 to 18 months at eirher low rates aka currently 4.99% for 18 month or ZERO percent for 12 months with a 3% fee (current Discover offer). Many other cards offer ZERO percent for up to 21 months for balance transfers, most with a 3% fee, several with no fee. Property owners can get equity lines at very low interest rates through credit unions and banks both at fixed terms or revolving credit & payments. 

 

It's one thing to use a credit card for what you can afford to pay in full every month (net = NO Interest) or for special financing at special rates (Lowes 5.99% project financing comes to mind because I've used it), it's another thing to take out a credit line and use it as a "credit card" which I would NOT suggest.

 

Note: I edited out your link because your post reads like an advertisment for a business.

Message 3 of 5
Frequent Contributor

Re: I take a Credit Line over Credit Card

Credit cards have advantages such as cashback, rewards, and perks that lines of credit don't have. From my standpoint, there's no advantage of using a line of credit in comparison to a debit card, and a marked disadvantage compared to most credit cards. I just don't see the value.

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FICO Scores: TransUnion 775, Experian 797
Message 4 of 5
Highlighted
Valued Contributor

Re: I take a Credit Line over Credit Card


jsengendo wrote:

Again this is a personal choice that i do find to be much better having a Credit Line than having a regular Credit Card.  I know the convenience of using the card but its that same convenience that makes it easy to make useless purchases on a credit card...

 

My credit line has been at  much lower interest rate,  in order to use it, i have to do an online transfer to checking account and the whole process while seemless,  promotes a better usage than a credit card..   I think am done with credit card and i can always get a low interest loan incase i need more... with these guys...https://www.sofi.com/refer/148/36200

 

Personal Loan Rates
4.74% APR2 - 10.79% APR2
Variable Interest Rate Range
5.95% APR2 - 12.49% APR2
Fixed Interest Rate Range


Just a word of caution, referral links are not permitted in the forum, it is a violation of myFICO's ToS. You might want to edit that part out.

Message 5 of 5