Personal Line of Credit

A personal line of credit from a credit union allows you to borrow up to a certain limit as needed. It functions similarly to a credit card, where you can draw funds, repay them, and borrow again up to your credit limit during the draw period. After the draw period ends, a repayment period begins, when you can no longer draw funds and must repay the outstanding balance.

The main difference between the two borrowing options is in how the funds are accessed and repaid. With a personal line of credit, you have access to funds as needed up to your limit. After the funds are repaid, you can borrow them again. You can repeat the process as often as you like during the draw period. With a personal loan, you receive the entire loan amount upfront and then repay it over a fixed period with monthly payments.

Yes, a hard credit check will be done to assess your ability to repay the money you borrow. In addition to your credit score, your income, employment history, and current debts will also be reviewed.

Our personal line of credit is unsecured, which means no collateral is required.

There are no restrictions on what you can do with the money you borrow. Some common ways that people use personal lines of credit include:

• Home improvements or renovations
• Consolidating debt
• Medical bills
• Vacations
• Weddings and other special events
• Vehicle repairs
• Moving expenses
• Appliances, furniture, and other large purchases

An unsecured personal line of credit will most likely have a lower annual percentage rate (APR) than a credit card, which helps you save. It may also have a higher credit limit, which makes it ideal for a remodeling project or large purchases. With a line of credit, you can make convenient monthly payments and have easy access to cash when you need it.

Credit cards require minimum monthly payments, and carrying a balance can lead to high interest charges, which may cause your account balance to grow. Credit card cash advances also usually come with high fees and interest rates, which makes them a more expensive way to get cash.

When you draw from the account, you can either transfer money to your checking account or make a cash withdrawal. After transferring money to your checking account, you can then write checks or make debit card transactions.

Yes, membership is required for our personal line of credit. Membership is open to anyone who lives, works, attends school, or volunteers in Bucks, Chester, Delaware, Montgomery, or Philadelphia County, or is related to an existing Freedom Credit Union member.