Multiple Lines of Credit – Not Necessarily a Bad Thing

by William Blake

A line of credit can be a very valuable part of your financial planning. Having a line of credit open and ready to use is beneficial in case of an emergency. One nice benefit is that you use it at your discretion and there is no obligation. You only use it if you need it.

Multiple credit lines gives you option and allows you to choose which fits your circumstances depending on what situations you are faced with.

Having a credit card is almost a necessity these days. Cash is not carried that often by people as it was in the past so having a Visa card is important. If your car breaks down on the side of the road and you do not have enough money in your checking account to use your debit card, you need to use your credit card.

When you think about the possibility of being stuck short of cash in the face of an emergency, being able to use a credit card for minor unexpected expenses is very valuable.

For more unexpected expenses that are larger a line of credit may be helpful. Drawing money out off a line of credit can be as simple as writing a check to your bank for cash, or writing a check to yourself. It can also be used to catch up and get back on track if you find it difficult to meet your debt obligations.

Having multiple lines of credit gives you a back up plan. If you have an issue with one line of credit you have another to fall back on.

Though your intentions may not be to always use your credit lines, having them available is good financial planning.

Having different types of credit lines gives you options so many do not enjoy. It allows you to choose the best way for you to finance your needs, keep your monthly expenditures low and save yourself from high interest payments.

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