Having a Line of Credit allows you to be in a financial position to access money when you need it – for emergencies, home appliances, car repairs, farm and business operating expenses. How you use the funds is up to you. A line of credit allows you to overdraw your chequing account within a pre-established limit. A personal line of credit is accessible for Direct Payment purchases and ATM cash withdrawals.
Interest rates on a line of credit are lower than with credit cards, it makes sense to use a Line of Credit as a revolving source of cash. Interest is charged on the amount borrowed and only for the number of days it is used. If you don’t use it you don’t pay interest.
- Overdraft protection up to a pre-authorized limit
- Instant access to funds for purchases, bill payments or trade credit (agricultural & commercial)
- Interest much lower than a credit card calculated only on the negative balance in your chequing account on a daily basis, charged monthly
- If your line of credit is not used, interest is not charged