Line of Credit

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Line of Credit
Bank Line of Credit

Most banks offer a number of line of credit products to their depositors. Bank lines of credit can be flexible but they are often high interest and hard to get.

In most cases you will have to have a checking deposit through which you run a minimum amount of money to get a bank line of credit. You will also have to have a good credit rating to get a bank line of credit.

Internet banks and credit unions maybe more flexible in the lines of credit that they offer. Some banks will only offer lines of credit to business customers. Others will make certain lines of credit available to individual customers.

Checking & Cash Lines of Credit

The most common bank line of credit is a checking or cash line of credit. This is a line of credit attached to a checking account. These products are designed to cover the account in case insufficient funds are available to cover checks written on it.

This kind of credit is also called overdraft protection. It is fairly easy to get for those who have good credit ratings but it can come with high interest rates. Some individuals will use this credit to cover day to day expenses.

There are some banks that offer checking or cash lines of credit to preferred customers such as businesses that run a lot of cash through their accounts. Some banks have checking accounts that come with these lines of credit.

Banks that specialize in business lending will often have these products for business customers. Some of these lines of credits may come with a credit card.

Credit Cards & Lines of Credit

Many bank lines of credit are attached to credit cards. An example of this is a checking account with overdraft protection linked to a Visa or MasterCard credit card. In such an account the customer is given a line of credit that provides overdraft protection. The customer is also able to access this line of credit through a credit a card.

Many business lines of credit and business checking accounts with lines of credit come with credit cards. The credit card enables the business to use the line of credit without going to the bank. The business is able to cover expenses by using the credit card or writing checks.

Other Bank Lines of Credit

Many banks offer other lines of credit as well. Most banks offer equity line that is backed by the equity in a home or mortgage.

If a bank offers mortgages it will probably offer equity lines of credit in real estate as well. Some banks will offer hybrid products that will combine a mortgage and a line of credit. Small business loans maybe linked to a line of credit as well.

A customer can learn what lines of credit their bank offers by going to its website. Most banks allow customers to apply for lines of credit online.