cards. Borrowers use checks to pay their bills, purchase goods and server financial institutions offer open account credit to qualified borrowers. Revolving Credit Lines Payments are usually structured to be due, Home equity lines of credit enable you to acquire cash based on the 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. Today your home is worth $275,000. The balance you owe on your mortgage is $75,000. Your equity is $ -You have. to 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 5 . 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-eredit card) credit have in common? Check all that apply. They provide funds that can easily be exhausted. They provide funds that are easy to spend unwisely. They require colloteral. They have potential tax advantages. Knowing how revolving lines of eredit work will help you to make informed decisions about using them. Answer the following questions about the various options avallable through revolving credit lines. Using overdraft protection without getting into trouble with it requires Remember that the 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 Remember that a big danger is that ance approved, obtaining cash advances is The debt created can An advantage of using a home equity line of credit is A big danger is that you have the cash flow necessary to make the payments. You lose your house