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Credit Application Chatham Steel  Form

Credit Application Chatham Steel Form

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welcome back today we're going to be talking about what is a line of credit now a line of credit is a lending instrument that you can get from a bank or credit union just like a loan a line of credit usually has an interest rate higher than a loan so that's what deters people to go on and get a loan is because a loan usually has a lower rate of interest so you qualify based upon your credit just like with a loan and the bank will give you a maximum amount of line or money that you can borrow at any given time unlike with a loan they give you the money up front and you pay interest on it whether or not you use it but a line is available for your use as you need to use it you can pull the money out you can pay the money back you can turn around and use it again that's why it's called a revolving account so if you get a twenty thousand dollar line of credit and you pull twenty thousand dollars out today but you make a payment of two thousand dollars back tomorrow that two thousand dollars

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