Personal Line Of Credits

[Jonwi5]

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.

[Creditaddict]

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@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.

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you only will have a payment if you borrow against it

[Jonwi5]

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@Creditaddict wrote:

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@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.

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you only will have a payment if you borrow against it

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

[Anonymous]

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

[Jonwi5]

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

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

[Anonymous]

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.

[Jonwi5]

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@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.

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

[Anonymous]

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.

[Jonwi5]

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@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.

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

[hot4u]

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@Jonwi5 wrote:

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

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

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It adds to your credit mix. Good for Fico scores