What is an unsecured line of credit?
A line of credit is an amount of credit that the bank extends for a certain amount of time. The balance revolves like a credit card, but you don’t use a credit card to access the funds.FeaturesAn unsecured line of credit doesn’t rely on any of your assets as collateral. If you default on an unsecured line of credit, the bank can’t repossess your property.QualificationsThe bank grants an unsecured line of credit based on your ability to repay. They may consider your credit score, employment history, income, and other debt to qualify you for the unsecured line of credit.AccessYou can draw against your line of credit by writing a check up to your credit line. Then, you repay the balance over a period of time.UsesYou can use an unsecured line of credit for to consolidate other unsecured debt, make home improvements, or pay for education expenses. Sometimes, you can use a line of credit as overdraft protection for your checking account.WarningUnsecured lines of credit are harder to find bec
