Line of Credit vs Credit Card - Business Credit 2019

How does a line of credit vs credit card match up? In this video you will discover how a line of credit compares to a credit card for both personal and for business. You’ll also learn how to qualify and what underwriters look for in your credit application.

It’s important to realize that a line of credit is similar to a credit card because they both are revolving and have a preset credit limit. Both allow you to borrow against your credit limit whenever you need it, repay it, and use it again.

Lines of credit vs credit cards are similar because you can maintain a revolving balance and pay a minimum monthly payment. Where they are different is in how they are best used, interest rates, access to cash, and rewards.

For example, a line of credit is accessed using checks, on the institution’s website, over the phone or in person at the local branch. Whereas credit cards are accepted anywhere the card issuer’s credit card network is accepted. (Visa, MasterCard, AMEX, Discover)

A line of credit is best used for big purchases and when you need access to large amounts of cash or working capital. Credit cards are best used for small purchases and day to day expenses. They are also best used if you want to maximize rewards programs.

With a line of credit, you have the ability to pull 100% cash out of the total credit limit with no cash advance fees and no high APR cash advance rates. With a credit card you have cash advance abilities but it’s important to be aware of cash advance fees and high APR cash advance rates.

When it comes to an unsecured personal line of credit and business lines of credit, each has its own unique underwriting criteria. With a personal line of credit, you are required to provide a personal credit check and verifiable income.

With a traditional unsecured business line of credit be prepared to furnish much more documentation such as two years personal and business tax returns and financials.

Remember, you can always get a lower interest rate with a line of credit that is secured with collateral. The most popular type of secured line of credit is a HELOC.

With a line of credit vs credit card, a personal credit card is much easier to qualify for since it requires only a credit check with no income documentation needed.

Similar to a personal credit card, a business credit card is a stated income program as well. Stated income means you don’t have to verify business income by requiring you to provide pay tax returns, profit and loss statements, financials and other documents. Instead, you are simply asked to state your business income and it’s taken at your word.

In order to prequalify for our line of credit and credit card funding program for personal and/or business simply complete our online prequalification form and upload your tri-merged credit report.

Whether you are building personal credit, starting a business, own an existing business or you’re a real estate investor; a line of credit or credit card may be the perfect solution for you.

For more details on how to start the pre-qualification process for business credit card funding and other unsecured business lines of credit with no docs check out the following websites below.

https://youtu.be/6298pBK4yUg
https://businesscreditbuilders.org/
http://businessfundingreview.com/
https://businesscreditblogger.com/2018/12/19/unsecured-business-line-of-credit-no-doc/
http://creditreportengine.com