At Alterna Savings, we know you need financial solutions that make life easier, while also helping you save.
What is a line of credit?
Once approved, a line of credit acts as a preset borrowing limit that can be used at any time. It lets you take money out whenever you need it (as much as your pre-approved limit allows).
Ways to use your line of credit:
Transfer High-Interest Debt:
Interest rates on lines of credit are often lower than credit cards and loans. Consolidating your debt to your line of credit may be a great way to save money each month.
Be mindful of ongoing use when using your line of credit to pay off higher-interest credit card balances. You may want to consider reducing the overall credit limit on the card itself - just to be safe.
Your Rainy Day Fund
For many people, a dedicated savings account isn’t enough to cover life’s unforeseen events. A line of credit provides you peace of mind, and a built-in rainy-day fund for costly emergencies.
Renovations help spruce up your home and can add to its overall value. If you’re looking to sell, take advantage of your line of credit. You can potentially increase the selling price –and partially offset some of your renovation costs.
The beauty, and the main advantage of a line of credit, is in its built-in flexibility. You can spend money, repay it and spend it again if you need to.
When a line of credit is used responsibly, it is an effective resource that can save you money and benefit your financial well-being.