Revolving lines of credit generally do not involve the use of credit cards and often offer borrowers more credit at lower interest rates than credi 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 ome equity lines of credit enable you to acquire cash based on the The majority of lenders extend home equity lines credit based on either 100% of your equity or some portion, usually 75% to 80% of your home's market value, whichever if . If you have an xisting mortgage on your home, most lenders will your maximum line of credit by the outstanding balance of that mortgage. oday your home is worth $275,000. The balance you owe on your mortgage is $75,000. Your equity is $ You have o 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% ff your home's worth. Eighty percent of your home's worth is $ . Your lending institution follows the practice of most lenders as lescribed 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 require coltateraf. They provide funds that are easy to spend unwisely. They provide funds that can easily be exhausted. They have potential tax advantages. 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. 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 yourseif if the They require collateral. They provide funds that are easy to spend unwisely. They provide funds that can easily be exhausted. They have potential tax advantages. 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. 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 yourseif 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 once approved, obtaining cash advances is The debt created can An advantage of using a home equity line of crodit is A big danger is that you have the cash fiow neressary to make the poyments. You lose vour house