Why Should I get a Personal Line of Credit?
With low interest rates and a flexible repayment schedule, a personal line of credit is a smart and easy way to get access to money where and when you need it. With a personal credit line, you can borrow what you want, when you want, within a pre-approved limit, and you only pay interest on what you borrow.
Looking for the lowest personal line of credit rates Canada has to offer? Talk to one of our financial advisors about your borrowing requirements. We can help you find the best personal line of credit for your needs, or advise you on what other financial tools might be best for your particular situation.
How Does a Personal Line of Credit Work?
A personal line of credit is similar to a credit card in that you can set a borrowing limit, withdraw funds whenever you want, and use the funds for any type of expense.
However, in contrast to credit cards, personal lines of credit generally offer lower interest rates and easier repayment schedules. This makes a personal line of credit a smart loan for a variety of circumstances including:
- Home renovations
- Major purchases (such as a vehicle or property)
- Major life events (such as weddings or funerals)
- Unexpected expenses (such as health emergencies or family member needs)
- Debt consolidation
- Topping up monthly income (for self-employed people or people with irregular earnings)
When you borrow from your personal line of credit, you will be charged interest only on the amount you withdraw. You are required to make a minimum interest payment on whatever you borrow every month, but you can also repay the loan in full whenever you want. You can also borrow more money whenever you want, as long as you stay within your pre-approved borrowing limit.
Unlike some other types of credit such as a home equity loan or a home equity line of credit (HELOC), when you take out a personal line of credit, you are not borrowing against an asset such as your home. This makes a personal line of credit accessible to homeowners and non-homeowners alike.
Want to learn more about personal line of credit loans? Talk to one of our financial planners to find the personal line of credit right for you.