信用卡vs. 信用额度:我应该用哪一个?

Credit cards and lines of credit are two popular types of financing that many people use. The following overview will explain the differences between these two borrowing options so that you can select the best one for your needs.

信用卡是如何运作的?

A credit card is a line of credit that’s most often used for everyday purchases like groceries, 气体, 或衣服. 如果你被批准了, you’ll receive a physical card in the mail which you can then swipe, 利用, or insert into a credit card machine to complete a transaction. 

Every time you purchase something with a credit card, your available credit is reduced until you make a payment on your account.

You’ll receive a statement each month showing all of your recent credit card transactions. Every month, you’re responsible to pay your bill. You can pay the statement balance in full to increase your spending limit, 或者您可以支付最低到期余额. 不像大多数其他金融机构, 十大可靠彩票平台 only requires you to pay 1% of your balance every month, which gives you more cash on hand for other bills.

Our Visa Platinum credit card also offers a cash back incentive where you earn 1% of each purchase you make. 

信用额度是如何运作的?

If you’re approved at 十大可靠彩票平台, you’re given a line of credit that you can draw from, 根据需要.

You can use your line of credit to make purchases as often as you like up to the credit limit, which is replenished when you repay the money you borrowed. You can repeat the process of borrowing and repaying as often as you like during the period that the line of credit is active (the draw period).

在十大彩票游戏平台，十大彩票游戏平台提供a 个人信用额度 还有一个 房屋净值信贷额度 (HELOC).

Lines of credit also usually have variable interest rates. This is because the draw period could last for several years. The rate must be variable to reflect the current rate every time money is borrowed.

It’s important to point out that a 个人信用额度 is not the same thing as a 个人贷款. With a line of credit, you can periodically borrow and repay the money. 个人贷款, you receive a lump sum for the full amount upfront and then repay it with fixed monthly payments. 

How Are 信用卡 and Lines of Credit Different?

Although there are some similarities between credit cards and lines of credit, there are also some important differences to consider. These differences may make one borrowing option a better choice in certain situations.

抽签期的长度

With a credit card, an account usually stays open until the cardholder closes it. This means you could potentially have a credit card account for many years.

With a line of credit, the account is usually active for a specific amount of time. The draw period will vary depending on the lender but may be as long as 10 years.

资格的便利性

Qualifying for a credit card may be easier than qualifying for a line of credit. 对于这两个, 十大彩票游戏平台会评估你的信用评分, 工作经历, and other factors to determine eligibility. 在申请信用额度时, you may also be required to provide additional documentation including W2s, 银行对账单, 还有工资单.

奖励/津贴

如前所述, 许多信用卡都有奖励计划, 像十大彩票游戏平台这样的, where you can earn cash back or rewards points for making purchases with your cards. Lines of credit, however, do not have rewards programs.

担保要求

Credit cards usually don’t have any collateral requirements, unless it’s for a secured card. Lines of credit, however, may require collateral.

A secured credit card allows you to qualify for a credit card even if you have a low credit score. 用有担保的信用卡, you place a deposit with the lender for the credit limit you’re requesting. If you want a $500 credit limit, for example, you will make a $500 deposit. 

The lender holds the deposit for as long as you keep the account open. Many people use secured credit cards to either establish or build credit.

When Should Someone Use a Credit Card or 信贷额度?

Whether you should use a credit card or a line of credit depends on the situation.

Credit cards are best suited for everyday purchases. They can be used to buy groceries, fill your tank with 气体, and shop online. Many people use credit cards for their daily expenses to collect as many rewards as possible. 

A line of credit may be a better borrowing option when you need to purchase a big-ticket item or consolidate debt. Secured lines of credit usually have lower interest rates than credit cards, 哪种方法可以帮你省钱.

信用卡 With 十大可靠彩票平台

十大可靠彩票平台 offers three card options with competitive rates.

Our Visa Platinum Rewards card and Visa Student Platinum Rewards cards both allow you to earn 1% cash back for all of your purchases. 十大彩票游戏平台也提供Visa经典安全卡, which is ideal for those who want to establish and build credit.

Click below to learn more about our credit cards, which you can apply for online.