I was wondering what are your thoughts on credit lines vs loans

Say someone needs about $10,000

Does he take out a loan :confused:

or

Does get a credit line :sarcasm:

Which one is better?

No this has nothing to do with me

I am rather curious,after asking a guy at work what were his payments on his Dakota and he told me he got a credit line :dazed: That is the 1st time I heard of someone getting a credit line for a Truck

Sorry for being ignorant :crazy:

Caleb you are in that type of business what would you recommend ???

Thanx in advance SWRules

Freeze, a line of credit IS a pre-approved loan.
To the banks it's all about marketing. When you aren't asking them for a loan, they are coming after you with offers of a line of credit. From what I've seen, when you apply for a loan (and the banker knows you need the cash)the interest rate is often higher than the line.
IMO, use whatwever you can get the lowest interest on (because they arew the same thing).

I voted for Line of Credit, but I use both. When I have something come up like the new driveway I just had done, it's nice to just be able to write a cheque on your line of credit. Your payments are also more flexible, and I find I pay it off sooner because I can't stand having a balance owing on it.

On the other hand, when Ford was offering 0% interest on their vehicles, I turned in my leased sport trac and bought a new one.

If you have the line of credit set up already then you have options when it's time to buy.

line of credit is far better than a loan. most o fthe times the rates are better. i took out a 5000 $ loan at a bank when i was 18. 3 yrs down the raod i had it payed off and all i had was my car to show for it. when i got my 10000 $ line of credit and its all payed off, i will have 10 grand sitting in the bank plus my car. or if i only pay off 2000 on the line of credit, i can go and spend the 2000 on a computer or home theater system. Line of credit is the way to go.

If you can a get a good rate on your PLC (Personal Line of Credit) it will be less than small loan rates. Another advantage is that you pay interest on the balance owing. As you pay down the balance the interest is calculated on a smaller amount. You have more flexibility in repayment and no penalties for large payments at any time. If you miss the odd minimum payment it you just pay a little more interest. It is just like a credit card, so use responsibly.

line of credit for sure, pay off more if you have the cash, pay off less if you don't. Loans have set payments and if you miss one you are screwed. :cussing:

Line of credit for sure, if for no other reasons then the interest rates, and the fact that it's pre-approved.
Line of credit = Prime plus 2% = 6.5%
Personal loan = 9.5-10.5%
Credit Card = 19.5%

So much cheaper.

Thanx guys :sly:

If I only knew that 3yrs ago :crazy: