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| *Loan,banking and credit>>>credit line |
Is it better to have a line of credit or a credit card? |
Do the interest rates usually vary the same way on either one? With a credit card, you can make day to day purchases and if you pay in full when you get the bill you can avoid interest charges. With a line of credit you pay from day one so in that sense a credit card is better. Most all credit cards as well as lines of credit have variable interest rates though getting a credit card with a fixed APR is still possible. Now a line of credit that is based on your homes equity (HOE) can be useful for large purchase such as a car because the interest that you pay on those loans is tax deductible. Some credit cards have fixed rates, some are variable. All lines of credit have varying interest rates because of market fluctuations when you access the money. You have to understand first your financial management style. A credit card works better for you if you spend within your means, and therefore to be paid in full by the due date. You can avoid hefty finance charge and late charges. A line of credit works like a credit card but, the funds are charged interest right on the first day. It is like cash advance. The only difference is, as in most banks, you are given a DEBIT card and a checkbook. Yes. Line of credit or credit card are in the same class of lending and interest rates vary. One difference is a line of credit is a bank's confidence in the assets it has attached to the line of credit, which will include your own cash in some instances in addition to property. With a credit card, there is no such attachment to your assets. It depends on what the interest rates are. If your line of credit is secured by a second deed of trust on your house its is usually the cheapest money around. But then it is secured by your house. A credit card in my experience is a fixed rate while a LOC may be tied to an index LIBOR or such and will vary. If you are in the market for a mortgage, home equity loan, or refinance get up to 4 FREE No Obligation Mortgage Rate Quotes at http://www.m-o-r-t-g-a-g-e-r-a-t-e.com... LEARN HOW you can save some serious money with http://www.h-o-m-e-e-q-u-i-t-y-l-o-a-n.c... and FREE Home Equity Loan Information Line of credit would have cheaper interest rate versus credit card interest. I think line of credit has low rates of interest |
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