Personal line of credit: A powerful financial management tool
At Credit Union of Southern California (CU SoCal) we can help you save money with a personal line of credit.
A personal line of credit is a type of personal loan that can be used to pay off high-interest debt, for example, so you can better manage your finances.
How does a personal line of credit work?
A CU SoCal personal line of credit gives you a set credit limit (up to $30,000) that you can borrow from as you need. You’ll pay interest on only the amount of credit you use. Personal lines of credit are considered “revolving credit” and are like credit cards. Just use the amount of money you need and, as you pay off the loan, your available credit limit is replenished.
Personal lines of credit are helpful if you have ongoing or unexpected expenses. The money can be used for anything, such as a wedding, making home or auto repairs, a major new appliance, or paying medical bills and taxes.
How is a personal line of credit different than a personal loan?
With a personal loan, you’ll receive a lump sum of money and start paying interest on the full amount whether you use it or not. Personal loans may be better if you need a specific amount of money for a home renovation, for example.
When it comes to managing your finances, a personal line of credit can help you pay down or pay off high-interest credit card debt or student loans. Paying off high-interest debt using a lower interest loan saves you money on interest and ultimately frees up money so you can save more each month.
Why choose a CU SoCal personal line of credit?
- Financing from $500 to $30,000
- No application fee
- No prepayment penalty
- No funding fee
Interested in personal line of credit? Call us at 866.287.6225, visit your local CU SoCal branch, or apply online today!
