Personal Line of Credit | BCCU

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When and Why to Get a Personal Line of Credit.

Authored By: BCCU on 1/20/2015
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A personal line of credit is very much like a flexible personal loan—use it when you need it, pay it back at your own pace. Image from



Sometimes you use a credit card for a nice dinner out. Maybe you're considering purchasing a new car and looking for an auto loan. In between those two needs fall other purchases that are the perfect reasons to use a personal line of credit.

What is a personal line of credit?

A personal line of credit is very much like a flexible, personal loan. You apply for it, are approved, and receive access to funds up to $20,000*. Unlike a loan, which has fixed payments over a set time period, with a line you can pay money borrowed from your personal line of credit at your discretion—all at once, or over several months.

Why should I consider a personal line of credit instead of a credit card?

The best reason to use a personal line of credit instead of your credit card is the rate. For example, if you're considering purchasing a new computer, or planning a special anniversary holiday, Bellwether has created a special loan rate for our members. Our members often enjoy better rates over those national credit card companies.

When should I use a personal line of credit instead of a term loan?

When you only need a small sum of money (under $20,000) for a shorter period of time—say only six months—a personal line of credit gives you that repayment flexibility. You'll also save money since interest is only paid on the money you use for the amount of time you use it. Loans, on the other hand, are usually repaid over terms of 24 or more months, with interest owed on the full amount borrowed.

Are you considering getting a personal line of credit? Call us at 1-866-996-9828. We'll be happy to discuss your financial needs and the best solution for your situation.

* Payment example: A loan amount of $5,000 financed at 8.90% APR (Annual Percentage Rate) for 3 years would result in 36 monthly payments of approximately $158.77. Your rate will be determined by your creditworthiness, term requested, and ability to repay. Payment examples assume $0.00 down payment. Rates are subject to change at any time.

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