8. Revolving lines of credit Revolving lines of credit generally do not involve the use of credit cards and often offer borrowers more credit at lower interest rates than credit cards. Borrowers use checks to pay their bills, purchase goods and services, or even to take cash advances. Banks, brokerage houses, and other financial institutions offer open account credit to qualified borrowers. Revolving Credit Lines Overdraft protection is linked to your established overdraft provision can signal that you're You receive funds from an unsecured personal line of credit credit in case you overdraw your account. It draws on a line of credit that is usually Frequent use of your . You should use your overdraft provision Payments are usually structured to be due . Securing this type of line of going through the formality of setting up a new loan. It draws on a line of credit that can be . Remember, even though acquiring the funds is as simple as writing a check, the funds still represent a loan. Home equity lines of credit enable you to acquire cash based on the The majority of lenders extend home equity lines of credit based on either 100% of your equity or some portion, usually 75% to 80% of your home's market value, whichever is. If you have an existing mortgage on your home, most lenders will your maximum line of credit by the outstanding balance of that mortgage. You have to Today your home is worth $75,000. The balance you owe on your mortgage is $5,000. Your equity is $ sell your home in order to gain access to your equity. According to your lending institution's policy, the maximum home equity line of credit is 80% of your home's worth. Eighty percent of your home's worth is $ Your lending institution follows the practice of most lenders as described in the previous paragraph. Your line of credit will be $ This line of credit is considered a loan that will be What do the three major forms of open (non-credit card) credit have in common? Check all that apply. They have potential tax advantages. They require collateral. They provide funds that can easily be exhausted. They provide funds that are easy to spend unwisely. Knowing how revolving lines of credit work will help you to make informed decisions about using them. Answer the following questions about the various options available through revolving credit lines. . Remember that the Using overdraft protection without getting into trouble with it requires funds used for the protection are . As such, there a fee attached to using the funds. Ask yourself if the accumulating fees are really worth your overdrafts, for many of which you may have forgotten the original use. Using an unsecured line of credit can help you once approved, obtaining cash advances is An advantage of using a home equity line of credit is danger is that you The debt created can have the cash flow necessary to make the payments. You Remember that a big danger is that lose your house. . A big 8. Revolving lines of credit Revolving lines of credit generally do not involve the use of credit cards and often offer borrowers more credit at lower interest rates than credit cards. Borrowers use checks to pay their bills, purchase goods and services, or even to take cash advances. Banks, brokerage houses, and other financial institutions offer open account credit to qualified borrowers. Revolving Credit Lines Overdraft protection is linked to your established overdraft provision can signal that you're You receive funds from an unsecured personal line of credit credit in case you overdraw your account. It draws on a line of credit that is usually Frequent use of your . You should use your overdraft provision Payments are usually structured to be due . Securing this type of line of going through the formality of setting up a new loan. It draws on a line of credit that can be . Remember, even though acquiring the funds is as simple as writing a check, the funds still represent a loan. Home equity lines of credit enable you to acquire cash based on the The majority of lenders extend home equity lines of credit based on either 100% of your equity or some portion, usually 75% to 80% of your home's market value, whichever is. If you have an existing mortgage on your home, most lenders will your maximum line of credit by the outstanding balance of that mortgage. You have to Today your home is worth $75,000. The balance you owe on your mortgage is $5,000. Your equity is $ sell your home in order to gain access to your equity. According to your lending institution's policy, the maximum home equity line of credit is 80% of your home's worth. Eighty percent of your home's worth is $ Your lending institution follows the practice of most lenders as described in the previous paragraph. Your line of credit will be $ This line of credit is considered a loan that will be What do the three major forms of open (non-credit card) credit have in common? Check all that apply. They have potential tax advantages. They require collateral. They provide funds that can easily be exhausted. They provide funds that are easy to spend unwisely. Knowing how revolving lines of credit work will help you to make informed decisions about using them. Answer the following questions about the various options available through revolving credit lines. . Remember that the Using overdraft protection without getting into trouble with it requires funds used for the protection are . As such, there a fee attached to using the funds. Ask yourself if the accumulating fees are really worth your overdrafts, for many of which you may have forgotten the original use. Using an unsecured line of credit can help you once approved, obtaining cash advances is An advantage of using a home equity line of credit is danger is that you The debt created can have the cash flow necessary to make the payments. You Remember that a big danger is that lose your house. . A big