|
|
| *Loan,banking and credit>>>credit line |
What is the difference between a credit card and personal line of credit? |
I have just applied for a Wells Fargo Credit Card--I also have a checking account with them as well. Anyways, i was approved for a secured credit card of 800 dollars and denied a personal line of credit? I have to send them 300 dollars for collateral to get my card. Can someone explain this to me more thoroughly. Thank you. Your best bet is to actually ask Wells Fargo. Being a Banking industry vet, I can assume that what Wells Fargo terms a "personal line of credit" is actually an unsecured credit card. You may not have enough credit or a low credit score, so they have offered you a secured credit card, i.e. one backed by some collateral (your $300) and most likely a higher rate of interest. Hopefully after some time with responsible usage and on-time payments, they will reconsider. lign="right" > Sign in to vote! A secured credit card means they hold onto some money as a deposit against your card. An unsecured credit card is one where you sign for the money you owe. Both the secured and unsecured are what they call a revolving credit account where money is paid out to merchants everytime you charge and you make a payment, part, some, all or nothing each month. Whatever payment you make goes first to interest and then towards your balance. A personal line of credit could be a one-time personal loan without a plastic charge plate. You make a set payment every month that includes principal and interest. lign="right" > Sign in to vote! OKAY, the difference between a credit card and a line of credit is very simple. The interest rate. Think of it this way, a credit card interest rate has two types of rates. One is a regular rate and APY(Annual Percentage Yield) and the other is and advanced rate, which is usually high and can get you in a lot of trouble. If you went into the bank and got an advance on a credit card your rate might be as high as 23% verses the 14% purchase rate you have. A line of credit might not have a great rate either, but at least it does not charge you an advance rate fee. lign="right" > Sign in to vote! I have found a button on the source. It leads to a site that does not turn anyone down for a credit card and no credit checks. The site is great for other resources. |
| Tags |
| credit application credit bureau credit check credit counseling credit debt credit line credit repair credit report credit score credit card online bad credit loan |
SiteMap--Copyright/IP Policy--Contact Webmaster For personal non-commercial use only. |