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It can certainly feel like it if you're facing down the due date of an invoice or bill, especially if you spent a considerable amount of time tabling your budget. It's hard to see all of your efforts amount to nothing, but it's not unusual. Sometimes even the best loan against property budgets fail. When they do, a personal line of credit can help.
You made a budget for a reason. Whether or not it ended up being accurate this month, it's a way to track your finances and make sure your income can cover all of your expenses. It's a way to be prepared. Having a line of credit at your disposal is a way of being prepared for when you budget doesn't quite work out. It provides you with immediate cash that lets you overcome surprising financial emergencies.
Many Americans assume that a personal line of credit is outside of their financial capabilities because of poor credit. According to Experian, a global information service that provides an inexpensive credit check, nearly 30% of Americans have poor or bad credit. According to their estimates, an even greater number of Americans have no credit at all, which amounts to the same disadvantages as subprime credit on paper.
If you find yourself a part of that 30%, you will have difficulty finding a traditional lender to provide you with a line of credit.
However, traditional lenders aren't your only option. You can secure a personal line of credit with a direct online lender, even if your credit is subprime. In most other regards, these loans are like any other line of credit. Once you're approved, you can use your credit at your discretion, and you only have to pay a minimum balance once you start using it.
This minimum balance will differ depending on where you live, as your state's government has enacted specific laws regulating the size, terms, and conditions of your line of credit. As a result, state licensed direct online lenders must adjust their rates and fees according to these state-wide laws.
Some states require you to pay for the fees and finance charges applied to your loan, while others require a small payment against your principal balance in addition to these fees. If you live in Kansas, Maryland, or Missouri, you can read up on MoneyKey's line of credit personal loans to learn about what minimum payments you can expect. Knowing what your minimum payment involves will help you determine if a personal line of credit is a reasonable addition to your finances.
If it is, a line of credit is a great complement to your budget. Surprise bills and unexpected expenses can come along and you won't have to worry about how you'll pay for things. That feeling of comfort is worth it.