Personal lines of credit offer a flexible way to borrow the exact amount of money you need – but be careful of rate spikes.
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Opening lines of credit can also have a positive impact on your credit score. For example, making regular payments towards your line of credit can affect your credit score in a positive way. Because payment history accounts for such a large amount of your credit score, timely paym...
Lines of credit are typically considered revolving accounts and may work like credit cards. But there are some nonrevolving lines of credit. Lines of credit can be unsecured or secured, depending on whether collateral is required. Examples include personal lines of credit (PLOCs), home equity li...
Home equity lines of credit (HELOCs) and home equity loans (HELOANs) are two ways to achieve similar ends. But they are different, and understanding how each one works can help you decide whether one or the other might work for you. ...
A. False Dilemma: an argument that presents a limited set of two possible categories and assumes that everything in the scope of the discussion must be an element of that set B. Guilt by Association: a fallacy used to discredit an argument for proposing an idea that is shared by some so...
Sometimes, it's easier to describe how a money move works with real-life examples, so let's take a look at a situation where a line of credit is often considered. Line of Credit Examples There are secured and unsecured lines of credit. With a secured line of credit, you're putting up...
Lines of credit aren’t the best borrowing option. There are potential pitfalls to be mindful of and try to avoid if your application is approved. High interest rates The convenience of lines of credit comes with some extra costs, mainly high interest rates. The reason for high-interest cos...
The Importance of the Interest Coverage Ratio The interest coverage ratio is an important figure forcreditorswho want to determine whether a company can pay back its debt. If it has trouble doing so, future creditors are less likely to extend it credit. ...
Lines of credit can be secured or unsecured, but there are significant differences between the two, such as the interest rate paid by the borrower.