Equity Line Credit - This Article Will Assist You

You are smart if you know what to do with your equity line credit

. A lot of folks take the loan and don't have clue how to use it so maintain their best interests. In the end, they lose what they planned it for, and the collateral they laid down - their home. And to think things could have been so much different if only they had been more meticulous. Such a shame.

An equity line credit is a loan on top of a loan. The first loan was the mortgage on your home, and the second is this one that you are taking now. You want to make certain that you don't owe when this one is done because then, you might never be able to get out of it again, and then you could lose the home. And how sad that you would lose your home at that time of your life when you should indeed be taking things a lot easier.

When you take an equity line credit you are not advanced the entire sum up front. Instead, they issue you a line of credit that allows you to borrow sums in bits that do not add up to more than you asked for. You get some kind of ATM card with which you can withdraw from any ATM machine up until a certain date.

When you are issued a loan on equity line credit, you don't get to carry cash. I consider this a real plus because you then don't get to be followed home by thieves, and robbed. It might seem only a distant possibility, but it is a very real one indeed. You will do well to remember that. As far as I am concerned, that's a very big advantage that we shouldn't take lightly. And I am very serious about this!

In some ways, equity line credit is similar to a credit card, except that it is more closely related to an ATM card. This they hand to you when you borrow, and they tell you that you can spend as you feel like until the value of the money you wanted is spent. That ought to allow you the flexibility to spend as you please.

by: Kim Johnson.

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