A Line of Credit Covers the Unexpected

Mar 28

If you’ve never made a budget before, you may be surprised at where all of your money goes – and maybe even disappointed. Once you’ve crunched the numbers, you might realize that you have just enough to cover your expenses (or near enough) each month. This might come with a sigh of relief; it’s certainly better than coming out in the red! But it’s still not a good sign. Without any extra income, there’s no wriggle room or savings to be made. Should something unexpected you didn’t budget for come along, you’ll have no means to pay for it.


Furnace repairs, brake line repairs, renewing a round of prescription antibiotics – these are just some examples of those unexpected financial obligations that can come along and surprise you. These aren’t frivolous shopping sprees but very necessary investments you need to make. You can’t ignore your furnace in the middle of winter any more than you can drive without brakes or sabotage your health. But with no savings to your name, your monthly budget can’t afford to take on these additional costs. Stuck between a rock and hard place, you can start to feel the pressure grow.

For many Americans in your exact position, personal lines of credit are an excellent way to prepare for these unforeseen, yet unavoidable, expenses. A line of credit provides you witha little bit of extra cash to use at your disposal. This means you can let it sit, untouched, in your account until a repair comes along that requires immediate payment; or you can use your line like you would a credit card and draw small amounts from its total over a longer period of time. In the former scenario, when it’s left untouched, it won’t incur any interests or fees. Interest only even accumulates when you make your first withdrawal. From that point onward, you only need to make easy minimum payments towards your bill.

Typically, there are two types of credit – secured and unsecured. A secured line of credit is backed by collateral like your house or car, and it requires an in-depth assessment of your financial history. For those of you who have poor credit to your name, these secured credits aren’t a viable option. Unsecured credit lines don’t have any collateral backing them. As the lender takes greater risk in providing this loan, the credit’s interest rate tends to be higher.

If you have bad credit, you can get a line of credit loan online from trustworthy direct online lenders. These lenders provide a convenient alternative to those traditional lending options. They require no lengthy interview process to assess your credit history, nor do they even need to meet you in person! This is perfect if your work schedule is incredibly busy. You don’t have to set up an appointment to speak with a representative. You only need a computer with access to the Internet. With those two things, you can start your application

Direct online lenders have a fast and easy to navigate online application that take less than 20 minutes to fill out, during which you’ll only need to supply your email address and basic banking information in addition to proof of your American citizenship, your age (as you have to be over 18), and income. You’ll know if you qualify instantly, and if you’re approved you can have access to your line of credit in one business day.

A reputable direct online lender will provide you with the tools to create your own financial successes. One of the ways they do is by limiting your credit limit to $1,000. This initial restriction provides you with just enough money to cover your immediate, short-term goals without creating the temptation to charge all of your expenses against your credit. When your limit is regulated, your line of credit remains the brief financial relief it was always meant to be.

Another way a direct online lender provides responsible credit lines is by abiding by your state’s laws and regulations. By doing so, they’ll have a license to issue lines of credit that offer manageable rates, terms, and conditions in line with your state’s policies. Take the time to find out which lenders in your state can offer you state-licensed credit lines. It’s the only way to ensure you get the best loan for your financial situation – even when your budget is just breaking even.