Personal Line of Credit Basics


 Personal lines of credit generally offer lower interest rates than credit cards or cash advances and may allow you to borrow more money than your traditional credit card.Have you found yourself a little bit behind on your bills? Or maybe you are just in need of some extra cash to plan a summer vacation or make some much-needed home improvements. Whatever the case, a personal line of credit from Colonial may be exactly what you need to help your financial situation. Below, we’ve answered some of the most common questions regarding a personal line of credit.

What is a Personal Line of Credit?

A personal line of credit is a flexible, revolving line of credit offered to Colonial banking customers. Personal lines of credit generally offer lower interest rates than credit cards or cash advances and may allow you to borrow more money than your traditional credit card.

What can I use a Personal Line of Credit for?

A personal line of credit allows you to use the funds when you need them, paying back interest on only the money you borrow. You can use a personal line of credit for any situation where a little extra cash can be helpful. Help finance a summer getaway, catch up on bills or make some repairs around the house.

Is a Personal Line of Credit different than a Personal Loan?

A personal line of credit is different from a personal loan. With a personal loan, you receive the total amount borrowed in one lump sum that you begin paying set monthly payment (principle and interest) from the onset. A personal line of credit allows you to obtain funds only when they are needed, and allows a more flexible repayment, with interest only payments.  Principle reductions can be timed to fit each individual’s cash flow.

How Can I Learn More?

To learn more about a receiving a personal line of credit contact Colonial today! You can give us a call at 817.390.2000, or apply online. Colonial offers a variety of personal banking options to our customers. Home equity loans and lines of credit, personal credit cards with competitive rates, online and mobile banking and more. For more information on the full suite of Colonial banking products, visit the Colonial Banking section of the website here.

 

Related Article: Not sure if a Personal Line of Credit is right for you? See how you can Tap into the Cash Under Your Roof With a Home Equity Line of Credit.

 

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