Companion Credit Union – Line of Credit
Uses For A Line Of Credit
Many banks, lenders and credit unions offer a product called a “line of credit”. What, exactly, is a line of credit?
Basically, it’s like a bank account that is funded with borrowed money. You have a certain limit to what you can borrow, and it will be linked to cheques, ATM cards or debit cards, depending on the bank. You can use the account just like your regular transaction account, and you only pay interest on the money that you’ve actually used. Often, these can be in conjunction with home equity loans or other types of loans.
The account allows you access to money for a variety of different purposes. A few common uses for a line of credit include:
- Financing a renovation or a remodel
- Financing a holiday
- Paying for the little big things in life: new TV, computers, equipment like ATVs and other leisure vehicles
- And many more.
Another major use for a line of credit is as a backup emergency fund. We don’t want to ever see it happen, but from time to time we might run into some kind of emergency. Medical emergencies, natural disasters, and many other things often happen when we least expect them. It’s important that you always have your own emergency funds set aside, but sometimes that just isn’t enough. Safeguard yourself and avoid having to worry about getting the loan when the emergency comes up, and have a line of credit at your disposal.
Why You Should Choose Companion Credit Union
Now that you know the variety of uses for a line of credit, why should you choose to go with a credit union such as Companion Credit Union? Because credit unions exist to serve their members, and not their private shareholders.
Traditional lending institutions are all about the profits. They’re owned in whole or part by shareholders, and to keep those shareholders happy, the bank has to show a large profit each quarter. In order to do this, the bank has to carry high fees, high interest rates and other things which are generally bad for the customers.
On the other hand, a credit union isn’t owned in any part by shareholders. The members (that would be you) are the owners for the credit union, and the success or the failure of the institution depends on your happiness. The entire reason Companion Credit Union (and any other credit union) exists, is to make their members financial lives easier.
For this reason, the profits aren’t paid out to shareholders, but instead they are reinvested back into the credit union to provide better service to the members. This could show in a drop in interest rates, lower fees, construction of new branches to satisfy the needs of more customers or even upgrades to technology and security to better served their members. Because of the way a credit union is operated, democratically by the members, most of the changes which take place are to the immediate advantage of the members.
This means that when you get your Line of Credit from Companion Credit Union, you’re likely going to see some of the best interest rates, fees and customer service of any lender you can find. Living your life, and funding your dreams and emergencies, will be made cheaper by banking with an institution that puts you, and all their members, first. Not only first, you’re the only people they’re concerned with making happy. Not the shareholders, not outside investors. Just you.
Featured Personal Loans
| Personal Loan | Details | Min Interest Rate | Min Comparison Rate | Min Loan Amount | Min Loan Terms | Apply Fee | |
|---|---|---|---|---|---|---|---|
 ME Bank Personal Loan | A low rate personal loan from ME Bank with no application fee for a limited time. | 13.59% | 13.81% | $5000 | 1 year | $0 |   |
 Aussie Personal Loan | A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house. | 13.90% | 14.84% | $3000 | 1 year | $199 | |
 Sugar Money Personal Loan | Fixed rate personal loan with flexible options to get you funds when you need it. | 13.99% | 15.00% | $3000 | 2 years | $250 | |
 bankmecu Personal Loan | A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees. | 13.49% | 14.55% | $1000 | 1 year | $150 | |
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