Lines of Credit
A line of credit is a revolving loan that gives you easy access to funds up to a specified limit. It offers a flexible and convenient way to borrow.
How it works:
- Conveniently access the funds through yur Member Card debit card, cheques, and online banking.
- Only pay interest on the amount of credit you use.
- Once you have paid off part or all of the line of credit, that amount becomes available again -- which means you do not have to constantly re-apply for a new loan.
- A minimum regular payment is required, but you have the flexibility to pay down the entire balance or make a lump sum payment at any time without penalty.
- Variable interest rate.
- Often secured by real estate, but security depends on the line of credit amount and the individual member's situation.
How you can use your LCU line of credit to:
- Manage your day-to-day cash flow
- Take advantage of unexpected business opportunities
- Take advantage of supplier discounts
- Consolidate other higher interest loans
You may also be interested in:
- Operating loan -- An operating loan is an approved overdraft on a chequing account and is generally lower than a line of credit. It is usually used for very short-term borrowing. The interest rate is variable and comparable to a line of credit interest rate. Depending on the loan amount and the individual situation, an operating loan may be secured or unsecured.
Please contact us if you have any questions!
