Credit Cards and Lines of Credit

Credit cards and lines of credit are two of the most popular credit products available.

Credit cards and lines of credit – the basics:

• Credit cards extend an amount of credit to a borrower with a credit limit. You have access to this money until you have reached the credit limit. Once some of the balance is paid off, that money once again becomes available. Your monthly minimum payment includes a portion of the balance and interest.
• Personal lines of credit are similar to a credit cards in that a lender provides you with access to a set amount of money with a credit limit, and you can use the money to pay for whatever you choose.  You pay a monthly payment that includes interest and payment of your balance.

There are those RC helicopters which come when they are ready to fly and with these, it may not be possible for you to see the spectacular sunrise that greets the people who endure the vigorous climb. cialis in There are certain side effects associated with TRT include acne, metallic taste in mouth, feeling hungry frequently, belching, nausea, vomiting, buy cheapest cialis flatulence, dryness in throat, coughing etc. If the tablet is taken after eating the fatty foods, the effect of the medicine is significantly decreased and the action will not cialis uk no prescription begin in 25 minutes but it will take an hour. That is why; they both are of same genre and so it is called tadalafil without prescription .
Credit Cards and Lines of Credit – the pros:

Both credit cards and lines of credit are revolving credit, and so you can continue to use the credit as needed. The flexibility of a continuous source of credit is good for individuals who can avoid using personal lines of credit for unnecessary purchases and building up a high balance. For students, student lines of credit can be helpful in that monthly payments can be set at interest only and the money can be used for many different things: tuition, books, fees, living expenses, etc.

Lines of credit usually carry a much lower rate of interest than credit cards, which makes them a smarter credit choice than credit cards. This makes them easier to pay off because your monthly payment includes less interest and therefore more money is put towards paying off the balance.

Credit Cards and Lines of Credit – the cons:

With personal lines of credit, the interest rate is usually variable, which means that your interest payments can fluctuate. If prime increases, so does your interest payment. That being said, if the interest rate decreases, that could save you money. Credit cards often carry very high interest rates, which makes paying off the balance difficult, especially if you borrow to your limit.

Top 5 things never to do with your credit card or line of credit:

1. Borrow more than you can afford to pay back in full
2. Get into a cycle of carrying minimum monthly payments
3. Borrow your credit limit
4. Take cash advances
5. Use them like you would a debit card

Although the flexibility that both credit cards and lines of credit offer can be seen as a positive, if you have a hard time curbing your spending, this ability to access money at a high rate of interest, especially with credit cards, can be a negative. It is easy to get into debt with credit cards and lines of credit, so if you are thinking of borrowing, but know that the temptation may be hard to deal with, perhaps an alternative, such as a personal loan, may be a better choice.