Finance Builders


What is a line of credit?

6/21/2017 What is a line of credit?

What is a line of credit?

(Click on stars to rate)

A line of credit is an amount of money provided by a lender, which and individual or lender can spend at will, either by credit or check, provided they pay some amount back each month.

How to Qualify for a Credit line

6/21/2017 How to Qualify for a Credit line

How to Qualify for a Credit line

(Click on stars to rate)

Individual: Lenders will perform a credit check on any individual applying for an unsecured line of credit. They also look into a borrower’s employment history and yearly salary. Lenders look at a borrower’s debt-to-income-ratio (DTI). This is a measure of the amount of debt the person already owes relative to their monthly income. Thirty-seven percent of American adults admit they do not know their credit score.

What is an Interest Rate?

6/21/2017 What is an Interest Rate?

What is an Interest Rate?

(Click on stars to rate)


An interest rate is the amount by which a borrower’s debt increases each month. Interest rates are usually expressed as a percentage. Interest is how a lender profits from your credit line. The money a borrower pays in interest is collected by the lender as a fee for issuing credit.

The amount your debt will grow each month is calculated by taking the total balance and multiplying it by the interest rate. Fourteen percent is the average APR on new credit card offers. Thirty-six percent of credit card users say they didn’t know the interest rate on the card they use most often.

2 Different Types of Credit

6/21/2017 2 Different Types of Credit

2 Different Types of Credit

(Click on stars to rate)

 

  1. Secured Credit Line: A credit card that requires you to promise collateral to receive credit. These cards are often sought by consumers with bad credit who may not qualify for an unsecured line. Common items used as collateral: cars, homes, businesses, stocks and savings accounts.

  2. Unsecured Credit Line: Credit cards that are not secured by collateral. Customers qualify for such cards based on their credit history, their financial strength and their earnings potential.

 


Account Menu

Username

Password




Sponsors

GM Suite


Our Newsletters

Your Email Address
Big Phat Savings
Finance Builders
Biz Help 101