Is it a good idea to pay off a credit card with a personal unsecured line of credit? Thanks.
2007-04-07 12:40:19 · 6 answers · asked by dejay_web 1 in Business & Finance ➔ Credit
A line of credit allows you to make purchases, usually through your bank account and then you will have to apy it back.
A credit cards allows you to make purchases with a credit limit and is usually through a company such as Citibank ... They are very similar though.
Read this:
http://www.allbusiness.com/business-finance/business-loans-business-credit/906-1.html
Good Luck!
2007-04-11 12:29:25 · answer #1 · answered by Miss Know It All 6 · 2⤊ 0⤋
A credit card IS a personal line of credit. In most cases, 'personal line of credit' is used to refer to an account that where you borrow by writing checks instead of using a piece of plastic. In either case, you have an unsecured loan. The best way to pay off either is to actually PAY OFF what you have. Renaming the debt is NOT the same as paying it off.
2007-04-07 20:05:06 · answer #2 · answered by STEVEN F 7 · 1⤊ 0⤋
Personal LOC can be accessed by cheque, and in some banks, a debit card. Interest is charged right from day 1, no grace period, and requires from 3-6% minimum payment from the monthly statement.
Credit cards works positively for you if you (1) you spend within what you actually earn, and (2) you pay the debt in full. Interest is charged daily for cash advance (either from ATMs, POS, or over-the-counter), and may carry along a cash advance fee, and network mark-up. For signature / retail purchases, you have on the average from 35 to 55 days interest-free period, that is, if you pay the monthly bill in full.
It is never a good idea to pay debt by another.
2007-04-07 21:04:46 · answer #3 · answered by Ferd 2 · 1⤊ 0⤋
A line of credit is an account set up with a limit established and you can write cheques against it , up to the credit limit. you pay interest on any money used until it is paid back, there is no grace period, you are charged interest from date of cheque till time bank credits your payment.
Credit card gives grace period in which interest is not charged on PURCHASES. and if the account is received by the card company before the due date, there is no interest charged.
Interest rates, may be lower with line of credit, you should check.
Is it a good Idea to pay credit card with line of credit..NO, pay off your debts, don't increase them.
Once you start borrowing to pay borrowing, you will screw it up and end up in real debt.
2007-04-07 19:53:15 · answer #4 · answered by bob shark 7 · 2⤊ 0⤋
I think a personal line of credit is given only if you have proved you have good credit and it usually has much less interest so of course it would make sense to pay off your credit card with it and save on interest.
2007-04-07 19:48:54 · answer #5 · answered by Zoey 5 · 1⤊ 0⤋
either way you've got debt. whichever is cheaper % would be the way to go.
2007-04-07 19:48:00 · answer #6 · answered by dulcrayon 6 · 0⤊ 1⤋