Compare Line Of Credit Personal Loans
Are you interested in a Personal Line of Credit Loan, or want to know more about this type of loan?
Finance Monster is a broker service able to compare Line of Credit Personal Loans from banks and finance institutions all over Australia. We’ll try our hardest to get you really competitive rates and offers that you never could have found on your own. If you are wondering exactly what is a Line of Credit Loan then read on to discover how this type of credit can help you!
What is a Personal Line of Credit Loan?
A Line of Credit Loan is similar to a credit card, in that you borrow as and when you need it, then pay it back later. The difference is that rates for Lines of Credit Loans are usually lower than for credit cards, while the limit on the amount you can borrow is typically higher.
Personal Line of Credit vs Personal Loan
Many Australians interested in applying for credit consider Line of Credit Personal Loans, and many end up asking themselves whether it is best to go for a Line of Credit, credit card or Personal Loan.
So line of credit or personal loan – which one is better?
Here we have listed some advantages and disadvantages of personal line of credit loans over regular personal loans, in order to help you decide which is optimum for you:
Advantages of line of credit personal loans
Pay for funds used only: The main advantage of Line of Credit Personal Loans over regular loans is that you are charged only for what you have used. This means you only pay interest on funds you have already borrowed, instead of paying a percentage of a larger total loan amount every month.
Easy access: Often Line of Credit Personal Loans are linked to a card, meaning you can access funds when you need them – either by using an ATM or online. This means you can always draw funds if you find yourself strapped for cash. They are great for small business owners such as trades people.
Flexibility: You stay in control of how much you borrow.
Our Best Personal Loan Rate
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*The comparison rate is based on a loan of $25,000 for a term of 5 years. WARNING. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Disadvantages of Line of Credit Personal Loans
Fees and charges: This type of loan will have certain charges associated with it, for example an annual fee, set-up fee or monthly service fee.
Overspending risk: With line of credit borrowing, some customers find it hard not to overborrow. The temptation is always present to buy things you can’t necessarily afford.
Penalties: Most personal loans, line of credit type, will require monthly repayments and will incur a penalty if you cannot keep up. Always read the terms and conditions of your loan very carefully, in order to avoid any horrible surprises.
How do I apply for a Line of Credit Loan?
To get a Personal Loan or Line of Credit Loan you are likely to need the following:
- Proof of income: You will have to show proof that your income is steady and ongoing. Pay stubs are usually acceptable. Alternatively you can provide a bank statement which shows payments have been made from your employer.
- Debts: You will usually need to give a full list of any current debts you have.
- Identification: You will need to show a valid photo ID and also provide a photocopy of this document.
- Assets: You will need to show evidence of any real estate you own, plus vehicles and any savings you have.
Finance Monster – An Impeccable Service
Finance Monster is a knowledgeable and well-connected finance broker able to compare loans of all types from heaps of different banks all over the country. We are always here to help out, so if you need any more information on what is Line of Credit Loans or any other aspect of Personal Loan Line of Credit, get in touch today. We get many customers enquiring about what is Line of Credit Loan and asking us, “Personal Loan or Line of Credit – which is better?” and we aim to answer all your queries as well as finding you great deals.
Need to know more?
For further information about this type of loan, including whether a credit card, a regular Personal Loan or Line of Credit borrowing is better for you, do not hesitate to give us a call and have a chat to one of our qualified advisors.