Five Things to Know about Lines of Credit

It’s easy to be wary of a thing like debt. The word comes with a lot of negative connotations, so many in fact that most Americans actively try to avoid taking it on. Unfortunately, for the vast majority of people living in the US, it’s just not possible to dodge living with debt. Between student loans and mortgages, there’s not a whole lot in life that you can buy on your own unassisted. Even small items or services, amounting to less than $1,000, may require the large number of Americans who live paycheck to paycheck to contact a lender.

There is much you should know about Lines of Credit


Despite its bad reputation, acquiring debt isn’t always against your best interest. In fact, when issued by reliable direct online lenders, it can be a convenient and practical way to pay for your expenses. These lines are a particular helpful financial product that can provide a flexible way to pay for small, one-time expenses that put strain on your budget. Speak with your state-licensed online lender to know if it’s an appropriate addition to your current financial situation. For those living in Maryland, Missouri, and Kansas, the service representative from MoneyKey are available to take your call. You may also check out to read more about the terms and regulations regarding this product.

Before you start your research, read up on what this product can do for you. By knowing a little more about this particular product, you can ask the right questions of your direct online lender. Below, here are 5 simple things to remember about lines of credit from an online lender.

1. Good Credit Not Required
While traditional lenders will require an in-depth analysis of your credit score, many online lenders will not. This means you can apply even if you have a subprime credit rating.

2. Direct Lender vs. Credit Bureau
A direct online lender will not contact a credit bureau or any other lending organization when facilitating you loan. Since they don’t report to these associations, their financial products will not affect your rating.

3. Interest Only Charged After Use
Unlike small dollar loans, this product doesn’t not immediately accrue interest as soon as they are issued. You may have your advance and let it sit for an emergency. It’s only when you start to use it will you be charged interest, and this cost is determined by the amount that you use, not the entirety of the amount given.

4. Minimum Payments vs. Fixed Payments
Once you start using your advance, you won’t be expected to repay the amount you used in its entirety. Only a monthly minimum payment is required

5. Reasonable Limits
When issued by an online lender, this particular financial product can be set as high as $1,000. This is a sum much larger than typical small dollar loans, so it can help with sizeable expenses or multiple charges over a long period of time. Yet, it’s not too big as to provide a source of temptation, so its $1,000 limit helps you use it responsibly.

With this information, you can make smart decisions about your line of credit. Though it may be debt, when used properly, it can be a great source of cash for when you need it most. By choosing a state licensed lender as your source for your advance, you can easily take on and repay this assistance.