Monday, November 28, 2016

Answers To Your Questions About Online Line of Credit Loans

Answers To Your Questions About Online Line of Credit Loans


What exactly is an online line of credit loan?


Traditional loans are a simple three- part process: application, loan, repayment. The consumer decides they need some extra cash and applies for a loan – that’s step one. Step two is when the lender evaluates the person’s qualifications and decides to make a positive determination and issues a check or deposit for the funds. The recipient then repays the loan amount plus interest, and the transaction is complete. With an online line of credit loan, step one is the same but steps two and three are a little different. Instead of delivering the whole loan amount to the borrower, the lender makes a maximum amount available, from which they can withdraw all or part at any given time. Regular payments are made whenever there is any outstanding balance, and principle repaid goes back into the pool of available funding from which they can borrow. In this way it’s similar to a credit card – you use part of the available funds, make payments, and have the remaining amount as an “available balance” at any given time.

Can I get an online line of credit loan if I don’t have a great credit score?


You absolutely can. Unlike credit cards, mortgages, and most personal loans, the lenders who offer online line of credit loans do not depend on your credit score in order to determine approval. They realize that many of us have had a difficult financial period in our past, or made a youthful miscalculation that resulted in our damaging our credit score – and that credit repair is a difficult and most of all show-moving process. Since the seven-year clock resets every time any action is recorded on an account, it can take a virtually unlimited amount of time for the negative information to age off and disappear. Instead of counting on the “big three” credit bureaus to let them know whether or not a potential customer is a good risk or not, this group of lenders devised their own proprietary set of criteria which depend on current circumstances such as employment, income, and others, rather than on your credit score. This opens these loans up to a much wider pool of individuals – almost everyone has a great chance!

What kind of things can I use an online line of credit loan for?


Use these funds for anything you want or need! Perhaps the annual car insurance bill just came in and you’d forgotten it was due, and didn’t budget for it. You might need plane tickets for a holiday trip home, or a little extra cash for a school trip for your child. Or possibly you work one or more hourly jobs and for seasonal or other reasons you haven’t been getting as many hours as usual – that can throw a wrench into anyone’s budget, but an online line of credit means that whether you need a little cash to get by or a lot to cover a repair or an emergency, it will be there – preapproved – ready and waiting when you need it!

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