topic Re: Personal Line Of Credits in Credit Cards

Personal Line Of Credits

Jonwi5 — Thu, 30 Jan 2014 02:22:51 GMT

Hi Everyone.

I would like to clarify some doubts about LOC. First Let say I have A LOC of 2k and I currently not using it do I have to make a payment every month. Or I only start paying for the amount I use.

Re: Personal Line Of Credits

Creditaddict — Thu, 30 Jan 2014 02:27:21 GMT

@Jonwi5 wrote:
Hi Everyone.

I would like to clarify some doubts about LOC. First Let say I have A LOC of 2k and I currently not using it do I have to make a payment every month. Or I only start paying for the amount I use.

you only will have a payment if you borrow against it

Re: Personal Line Of Credits

Jonwi5 — Thu, 30 Jan 2014 02:35:21 GMT

@Creditaddict wrote:
@Jonwi5 wrote:
Hi Everyone.

I would like to clarify some doubts about LOC. First Let say I have A LOC of 2k and I currently not using it do I have to make a payment every month. Or I only start paying for the amount I use.
you only will have a payment if you borrow against it

In other words if I request one and get approved I will not have to pay until I use it for any purchase right

Re: Personal Line Of Credits

Anonymous — Thu, 30 Jan 2014 02:36:34 GMT

Yes there's nothing to pay, except the account fees if any, if you don't use it.

Re: Personal Line Of Credits

Jonwi5 — Thu, 30 Jan 2014 02:41:49 GMT

@Anonymous wrote:
Yes there's nothing to pay, except the account fees if any, if you don't use it.

Final question does it worth having one available, I can use it ocassionally if needed just to avoid fee is any.

Re: Personal Line Of Credits

Anonymous — Thu, 30 Jan 2014 02:48:33 GMT

Its nice to have one just in case you ever have cash flow issues. It's basically something like a credit card except you can get cash out of it and not be hammered with ridiculous cash advance fees.

But it also depends on your APR rate for the LOC. For instance if you got 7-10%, then that's a good deal in case you ever need cash urgently.

Re: Personal Line Of Credits

Jonwi5 — Thu, 30 Jan 2014 03:06:52 GMT

@Anonymous wrote:
Its nice to have one just in case you ever have cash flow issues. It's basically something like a credit card except you can get cash out of it and not be hammered with ridiculous cash advance fees.

But it also depends on your APR rate for the LOC. For instance if you got 7-10%, then that's a good deal in case you ever need cash urgently.

Ok this is the last last one, the only way to get the money is by check?

Re: Personal Line Of Credits

Anonymous — Thu, 30 Jan 2014 03:43:52 GMT

Depends on the bank's line of credit. For instance for US bank, you can get cash from their branches for no fee. If you get it via the ATM machine, there will be a 4% fee or something.

Wells Fargo doesn't seem to have any cash advance fees, if I remember correctly.

Read the T&C to be sure.

Re: Personal Line Of Credits

Jonwi5 — Thu, 30 Jan 2014 04:06:33 GMT

@Anonymous wrote:
Depends on the bank's line of credit. For instance for US bank, you can get cash from their branches for no fee. If you get it via the ATM machine, there will be a 4% fee or something.

Wells Fargo doesn't seem to have any cash advance fees, if I remember correctly.

Read the T&C to be sure.

Ok thank you enharu and I will be sure to check T&C completely. And thanks to creditaddict too for the info.

Re: Personal Line Of Credits

hot4u — Thu, 30 Jan 2014 04:19:38 GMT

@Jonwi5 wrote:
@Anonymous wrote:
Yes there's nothing to pay, except the account fees if any, if you don't use it.
Final question does it worth having one available, I can use it ocassionally if needed just to avoid fee is any.

It adds to your credit mix. Good for Fico scores

Re: Personal Line Of Credits

Jonwi5 — Thu, 30 Jan 2014 04:23:54 GMT

@hot4u wrote:
@Jonwi5 wrote:
@Anonymous wrote:
Yes there's nothing to pay, except the account fees if any, if you don't use it.
Final question does it worth having one available, I can use it ocassionally if needed just to avoid fee is any.
It adds to your credit mix. Good for Fico scores

That great too, thanks.

Re: Personal Line Of Credits

BarryNTexas — Thu, 30 Jan 2014 13:23:51 GMT

@hot4u wrote:
@Jonwi5 wrote:
@Anonymous wrote:
Yes there's nothing to pay, except the account fees if any, if you don't use it.
Final question does it worth having one available, I can use it ocassionally if needed just to avoid fee is any.
It adds to your credit mix. Good for Fico scores

So LOC is included in UTIL calc? Thanks in advance.

Re: Personal Line Of Credits

Anonymous — Thu, 30 Jan 2014 21:40:04 GMT

I have LOC with Wells fargo.

In the term when you pull out money you do not need to pay money but the interest rate start counting the day you take out the money. So there are not grace period like what they have in credit cards.

As for accessing your LOC, I guess it would depend on where your LOC.

I have with Wells Fargo so it shows up on my account management page. I can transfer money directly from LOC to my checking. I can go to the bank and get a check or cash. I will have to go see about the ATM.