There’s a common misconception surrounding lines of credit. Many think they’re only for those irresponsible people who constantly mismanage their money until they have no option but to borrow. For these people, personal lines of credit are used in times of dire need, to pay for utility bills, food, and other necessities. Often, they end up going further into debt than they were originally, as they find it difficult (if not impossible) to pay back what they used.
While it’s true, some unfortunate people rely on lines of credit to get through their day to day life, they are a minority. The vast majority of Americans recognize personal lines of credits as the financial tools that they are. When used responsibly, they can help to pay for things banking institutions wouldn’t usually finance a loan for. This means paying for those surprise items or bills that crop up from time to time and aren’t usually budgeted for. In this case, the line of credit acts as a kind of safety net, to be used only if a bill or repair requires immediate payment. This is especially true for those who are self-employed and have an unpredictable work schedules compared to their very predictable bill rota.
Once a personal line of credit is issued, the borrowed money can be used however and whenever the borrower wants. As they are typically worth more than a short-term loan, they afford more flexibility in what it can help pay for. The funds are available on an ongoing basis as large or small cash advances, and the borrower only ever has to pay interest on what was used instead of on the entire amount issued.
If you’re ready to experience the freedom of having a personal line of credit having your back, but worry about your bad credit history, fear not. Only banking institutions will require a full credit background check before they even consider facilitating your loan. Direct online lenders, on the other hand, will issue personal lines of credit to anyone – including those with bad credit. Their only stipulations are that you must be an American citizen (or permanent resident) over the age of 18. You must also have a veritable bank account, an active source of income and a have a valid email address, as this will be the main way a direct online lender will contact you.
If you fit this profile, head online to do research. Exploring your options is a vital part of securing a loan that’s right for you and your current financial situation. It’s your responsibility to find the direct online lender that will provide manageable terms and conditions regarding the repayment of your loan. You can do that by ensuring your lender is licensed by your state to facilitate loans. In order to be state licensed, a lender has to follow state-wide rules and regulations regarding personal lines of credit. So start your Google search with this in mind, only visiting those companies that can offer secure and reliable loans within your means. Compare them with the line of credit loans from MoneyKey.com, as they are the leading direct online lenders in Kansas, Missouri, and Maryland. Their rates and terms are conveniently posted on their website, in accordance with all state laws.
With this new knowledge in mind, you can understand how personal lines of credit can be a worthwhile financial solution. If you want to know the feeling of having your own line of credit safety net, start researching today. You can secure one in less time than you think.