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FlexCredit Line of Credit Loans

What is a line of credit loan?
As the lending market starts to change new types of loans are becoming available that are designed to offer consumers much more flexibility when it comes to managing their borrowing. The line of credit loans is part of this new approach to lending, sitting somewhere between borrowing on a credit card and a more traditional type of short term loan.

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How do you apply?

You apply for a line of credit loan in the same way as you would for any other type of loan, providing basic details about your employment and your income. You will need to be at least 18 years of age to apply for a line of credit loan and you need to be a UK resident with a UK bank account. You also need to have a job with a regular income for this type of lending. After you have made the application you will find out whether or not you’ve been approved – being approved means that the lender will assign you a credit limit, rather than a loan amount.

Finding the right lender can be a challenge and also quite time consuming. However, with FlexCredit you can make a single application for a line of credit loan and your details will go to numerous lenders who offer this type of lending and you’ll be able to quickly find out which lenders you match up with.

How does it work?

Once you’ve got a credit limit then the way that you borrow the money is up to you. You can withdraw a small proportion of the credit that has been made available to you or you can use the whole amount in one go. This is where the line of credit loan really comes into its own in terms of versatility – it’s much easier to use the money to respond to life’s ups and downs and there’s no rigid repayment structure to worry about.

How do you make repayments?

You will need to make at least the minimum repayment on your loan each month – how much this is will depend on how much of the credit you have borrowed. The less you borrow the less there will be to repay. However, you don’t have to stick to making repayments on a single date each month, you can repay cash into the line of credit loan whenever is convenient for you. When you repay money into the line of credit loan then this becomes available to be borrowed again, up to the credit limit that has been applied to your account. This ability to reborrow is another area where the line of credit loan really comes into its own as a flexible lending option. Repayments can be made either via direct debit or via a debit card.

What about interest?

Interest is charged on the amount of the loan that you have actually withdrawn. So, if your credit limit is £1,000 and you have only withdrawn £500 then you will only pay interest on the £500. If you want to keep the interest payments low then with a line of credit loan there is a choice.

What are the main differences with other types of lending?

A line of credit loan is flexible – unlike an installment loan you can borrow less than the credit limit, repay and reborrow and make repayments at times that suit you. A line of credit loan differs to payday loans in that you don’t just have a single lump sum payment and a single repayment with dates that are set in stone. You can borrow, reborrow and repay in a way that suits the demands of your life.

How much do you want to borrow?

How long do you want to borrow for?

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