Notice: We are currently experiencing intermittent connectivity issues.  Online Banking and Mobile Banking are currently unavailable. Thank you for your patience as we work diligently to resolve this issue.
Notice: Campbell Branch is currently closed due to building maintenance. We apologize for the inconvenience and appreciate your understanding.
Find the nearest branch or ATM.
Notice: Due to an outage, our phone system, ATM's, Branches, Online Banking and Mobile Banking are currently unavailable. Thank you for your patience as we work diligently to resolve this issue.
System Maintenance: On Thursday, February 15th, we’ll be performing a scheduled maintenance starting at 10 p.m. PST and ending at 2 a.m. PST on Friday, February 16th. During this time, Phone Banking will not be available. Thank you for your patience as we update our systems to better serve you.
We’re experiencing technical difficulties with our phone system. We apologize for the inconvenience.
Find the nearest branch or ATM.
ALERT: DON'T BE MISLED. 
County Federal will never call, email or text you to ask for information. Questions? Dial us directly at 800-282-6212 - we’re happy to help.
Find the nearest branch or ATM.
All County Federal offices and branches will be closed on May 27th, in observance of Memorial Day.
Find the nearest branch or ATM.
Are you impacted by the severe weather? Contact us today to apply for our Emergency Relief Loan.

What is a Personal Line of Credit?

customer interaction

What is a Personal Line of Credit?

Q: I need access to funds for some bigger expenses, so I’m thinking about a personal line of credit. What’s the difference between this loan product and a personal loan or credit card?

A: Personal lines of credit can be a great way for flexible access to a large amount of cash with minimal hassle and easy payback terms. Let’s look at how it differs from traditional personal loans and credit cards, as well as why it can be a fantastic way to access necessary funds.

What’s a personal line of credit?

A personal line of credit (PLOC) is a form of revolving credit up to a specified amount. The borrower can use the money as needed until the maximum amount (aka “limit”) is used. As the borrower makes monthly payments toward the balance, the available credit is updated appropriately.

A PLOC has two phases: the draw period and the repayment period. During the draw period, the borrower can take out money as needed from the available credit line. They can make payments during the draw period, but once the formal repayment period begins, the borrower can no longer take out cash from the credit line.

How is a personal line of credit different from a personal loan?

Unlike a PLOC, a personal loan provides the borrower with a lump sum of money that can be used immediately as needed. Personal loans generally have a fixed interest rate and a fixed payment amount throughout the term.

How is a personal line of credit different from a credit card?

As a form of revolving credit, a PLOC is similar to a credit card. Both are unsecured and can feature high interest rates, which are generally adjustable. However, a PLOC typically has a lower interest rate than a credit card. It also has a limited life term, unlike a credit card, which can be open for years. 

When is it a good idea to choose a personal line of credit?

A PLOC can be a great and flexible borrowing option in circumstances when the borrower doesn’t know the exact upfront costs, like home improvements, weddings – even adoptions. It can also be a good way for a borrower with fluctuating income to get through tighter months.

To learn more about this loan product, call, click or stop by County Federal today.

Content Source: CUContent

NCUA
Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.
Equal Housing Lender
Certified - CDFI - US Department of the Treasury
cross