Credit unions offer a variety of financial products at great interest rates. Since 1936, the Hawaiian Tel Federal Credit Union has been providing resources to their members in Honolulu. Here, they share some information to help you better understand what a line of credit is and how you can use it.
4 Things You Should Know About Your Line of Credit
1. It’s Similar to a Credit Card
A line of credit is a loan. You can spend up to a predetermined amount, but you don’t have to make any payments until you decide to start using it. It’s similar to credit cards in that sense, except that credit unions usually offer better rates.
2. Secured Lines of Credit
The most popular, secured line of credit is the home equity option. This loan offered by credit unions has great rates and high limits. You can also use a savings account or a certificate of deposit to secure for better interest rates.
4. Benefits of Using a Line of Credit
Unlike a credit card, you can withdraw cash from your loan without being penalized. The low-interest rates also make it a great option for investing. Finally, many customers at credits unions use their line of credit to pay down high-interest debt to help their financial situation.
Are you interested in knowing more about a line of credit? The staff at the Hawaiian Tel Federal Credit Union will be happy to assist you. To learn more about their services and find your nearest location, visit hitelfcu.com or call them on Oahu at 832-8700 or toll-free at (800) 272-5255. They also offer auto loans and other personal banking products. You can apply for any of their loan products online.