Personal Line of Credit
Get a credit line to use whenever you want, however you like, and only pay interest on the portion you use.
Line of Credit Features
- Rates as low as 7.00% APR*
- Line of credit amounts from $500 to $50,000
- Draw on the line at any time
- No line of credit origination fees
- Your monthly payment will vary with the amount of funds you use
- Pay no interest if you don’t use any funds
A personal line of credit (PLOC) is a versatile financial tool that gives you ready access to cash. You can get a line of credit of up to $50,000 and use the funds anytime to cover expenses like vacations, weddings, medical bills, or emergencies.
Like a credit card, a personal line of credit is a form of revolving credit. Your monthly payment will depend on how much funds you use – and you’ll only pay interest on the balance you carry.
The interest you pay on your line of credit may be tax deductible if you use the money to fund home improvements. To take advantage of these benefits, be sure to draw separate amounts for different purposes and keep good records.
FAQs About Our Personal Line of Credit (PLOC)
A line of credit means you have access to an agreed amount of money over a certain period of time, known as the draw period. In that time, you can use as little or as much of the funds as you choose.
Your monthly payments will go up and down depending on your balance. This is different from a personal loan, where you get a lump sum payment then have equal monthly payments, and pay equal amounts of interest, each month..
With a line of credit, you only pay interest on the funds you use. Your interest rate will likely be based on your credit score.
The interest you pay might be tax-deductible if you use the funds to pay for improvements to your home – so talk to a financial advisor about how to take advantage of this benefit.
You can use the funds to cover anything you need including:
– Debt consolidation
– Unforeseen expenses
– Medical bills
– Car repairs
– House remodeling and improvements
For tax purposes, it’s a good idea to use separate portions of the funds for different purposes and to keep detailed records.
Yes, you can build credit by making timely monthly payments on your line of credit. Like a credit card, you should always pay at least the minimum amount due.
Keep in mind that your credit score is also determined by how much total credit you have available (your credit utilization rate), so it’s best not to use all the funds available through your line of credit. The best debt-to-credit ratio is under 30%.
Annual Percentage Rates. For all lines of credit, the actual annual percentage rate is determined at the time a credit decision is rendered and may be higher than the lowest rate available. Credit history and the amount borrowed are factors contributing to determining the rate. Not all borrowers will qualify for the lowest rate. All lines of credit are subject to credit approval. As of the date of this disclosure, the Prime Rate is 4.00%.