One of the best financial tools for getting goods and services at the right time and price can often boil down to having credit. For those who have often wondered how to get a line of credit, it can be as simple as filling out an application, or it can be as complex as refinancing a home. Here are a few good ways to get a line of credit for modern financial needs.
Starting small
One of the easiest ways to get a line of credit can be to start with a department store credit card, and they are often just an online application away. An applicant only needs to choose the store where they shop on a regular basis, fill out the application and wait for approval. For those who only want a few hundred dollars so they can make purchases and spread out the payment, it can be an excellent way of starting small in the credit arena.
A secured line
Most lines of credit are not secured, and they are a risk for banks. They are nothing more than a credit card that can be used, paid off, and then used again. A good to excellent credit rating could be necessary, but a secured line of credit on a credit card might not require any previous good rating at all. Even those who have never had a card can apply. A secured line of credit is a prepaid card, and many offer clients an opportunity to build their credit, and over time a client with a history of good payments can translate them into a regular credit card without the need to prepay.
Unsecured credit line
Any credit card that does not require the consumer to pay a balance before they use the credit is an unsecured credit line, and they have been very popular over the last half century. Many people have applied online for regular credit cards, and those with good credit are often rewarded with larger amounts and lower interest rates. These are for consumers with a credit history, good payment habits, and they will need a good to excellent credit score to acquire one. Banks often offer them to their existing customers, or a person can apply for one online by searching out credit companies.
House refinancing
One of the lines of credit offered to established consumers can come with house refinancing. Some banks and mortgage companies offer lines of credit for people who are doing house refinancing. This particular line of credit is secured against the value of the house, but it is a revolving account that can be used, paid in full and used again. Application for it is generally done during a refinancing, but it can also be done by applying directly to the bank or mortgage company.
