It has been more than three years since we entered the Spanish market, and we did it with a product that, historically, had been aimed at companies: the line of credit. Thus, we choose to put at your service the first line of credit for individuals, since it is one of the most flexible financing products and, therefore, the one that best adapts to all your needs.
However, we are aware that, a priori, it can be a little difficult to understand well what it is or how to get the most out of it. For this reason, today we want to tell you everything you need to get the most out of your line of credit. Shall we start?
What is a line of credit?
We like to define the credit line as a kind of economic mattress that you will have at your disposal whenever you need it. Thus, the line of credit is a service through which you can have at your disposal a certain amount of money to use when you need it. Once we have granted you the money, you will always have it available, without paying any type of commission or interest until you use it.
In this way, when you need or decide to spend part of that money, you yourself can choose the amount you want to use and the time you want to have to return it. Thanks to the credit line, the money that you have not used will continue to be available.
You will only have to pay for what you have used
For example, if we have a 5,000 dollars credit line, and we receive an offer to make the trip of our dreams for 2,000 dollars, we do not have to worry about getting the money before the offer expires. We can go to our line of credit, withdraw the necessary money and pay it little by little with comfort and with the tranquility of continuing to have the rest of the money available in case we need it.
As you can see, it is a very flexible product, which gives you total control of your money and allows you to organize your personal finances as best suits you. Now that we have seen exactly what it is, let’s see how we can take advantage of it.
How to put the line of credit to good use
As you have seen, by having a line of credit, we can withdraw amounts of money and return them little by little. Once those amounts have been returned, they will be available again. In addition, the line of credit does not have any type of commission so, as long as we do not withdraw money from it, we will not have to return anything or acquire any debt.
If we talk about amounts or return terms, each line of credit is different. Normally, when going to companies, the amount is quite large. In the case of Across Lender, when betting on introducing the first line of credit for consumers, we decided to initially apply a limit of 3,000 dollars. However, after analyzing your needs and demands, and to give you even more control, we extended the limit to 5,000 dollars.
Giving you a margin of up to 36 months to return the money you have spent
When using the credit line, each of you will have your own preferences. However, we want to give you a series of tips for you to keep in mind: It is not necessary to withdraw all the money from the credit line : It is possible that we have been granted the maximum amount (5,000 dollars in our case), but that does not mean that we have to use all the money. If we need only 1,000 dollars to pay an invoice or to indulge ourselves, we can withdraw only that money and return it little by little, saving the rest.
Analyze your financial situation before using the credit line: Across Lender is a company that practices responsible lending. That means that before granting a loan we will analyze your situation to give you the product that best suits you. Likewise, we recommend that, before withdrawing money from the credit line,
You organize our personal finances to be sure that you can return it without problem
Establish a return period that fits you: With the Across Lender line of credit, we can have a return period of up to 36 months, so it is recommended to use this flexibility in our favor. Thus, depending on our personal finances, we can choose the term that suits us best to ensure that we are able to repay the loan in comfort.
Start by withdrawing little money and then, if you need it, increase the amount : At Across Lender we like to meet our clients and analyze your situation in order to provide you with the best service. Therefore, we recommend that you do the same and that you start by withdrawing smaller amounts of money. Once you have been able to return it with ease, you can gradually increase the amount, thus ensuring that you have no problem returning the money.
Differences between line of credit for individuals and line of credit for companies
As we mentioned before, the line of credit was historically designed as a financing service for companies. However, given its flexibility, at Across Lender we are committed to focusing it also on individuals, as we believe that it is a very useful product. Although our line of credit can also serve as a loan for freelancers and entrepreneurs, the line of credit for companies usually presents some differences.
The first one, and perhaps the most notable one, is that lines of credit directed solely to companies usually have some commissions that are charged over time. Likewise, they usually have a series of formalization costs and some even charge money depending on the amounts that are not being used.
On the other hand, the maximum amounts are usually higher than those for the line of credit for individuals, since companies normally need higher amounts of liquidity. Likewise, the return periods may be somewhat shorter.