Line of credit

What is a line of credit?

A line of credit is similar to a personal loan, except when you pay off a portion of the balance, you can use those funds again to make a new purchase. These loans will work similarly to how credit cards do in that you apply for a certain loan limit to be available whenever you need it. Many people use a line of credit to pay for everything and then pay it out when they are paid from their regular income.

Alternatively, a line of credit can be good to have and be used in emergency situations. For example, your monthly budget is working well, but then you are hit by an unexpected bill such as car repairs. Without available cash, you'll need to dip into your savings or simply go without your car until you save up enough to pay for it. When you need cash now, these types of loans can be a total lifesaver in all sorts of situations. Many people use them as a backup, so you don't need to worry about not being able to pay for something. 

At Ozzie Loans, we offer a line of credit for suitable applicants from $1,000 to $15,000, and the application process only takes a few minutes. As soon as you're approved, you'll usually have access to the funds immediately, so this is ideal at any time you need cash today. You can make purchases when you have available credit, and the limit you can borrow can be set to a specific limit. If you are looking at making a single large purchase, you may benefit from the repayment schedule of our personal loans. With Ozzie Loans, all our personal loan interest rates are highly competitive compared to other money lenders, particularly the big four banks. When thinking about which loan suits your circumstance the best, have a look through all the cash loans online as offered by Ozzie Loans.

How to calculate monthly interest on a line of credit?

Understanding how to work out the monthly interest on any loan is an excellent way to see how much your loan costs you each month. You'll need some basic information about your account to get started, and none of this is hard to find. First, you'll need your current interest rate; this may change from month to month depending on if you have a fixed or variable interest rate. With most credit cards, you'll find that the interest rate is fixed, but it pays to check before each interest calculation. The following figure you'll need is your current outstanding balance, and then it is time for some maths (you can use a calculator for this bit!). 

Take your interest rate and convert it into a decimal. To do this on a calculator, enter in your interest rate and divide it by 100 (e.g., 18% / 100 = 0.18). Next divide your interest by 12 (0.18 / 12 = 0.015), then you can multiply that number by your outstanding loan balance, (0.015 x $4,000 = $60). Using our example, you can see that on an interest rate of 18%, you'll be paying $60 interest on a balance of $4000 each month. However, most credit cards and a line of credit loan will offer you an interest-free period (usually 55 days), so if you pay out the balance of the loan before that expires, then you won't be charged any interest on your loan.

Is it hard to get a line of credit?

A line of credit is a standard loan to take out, and many of these are referred to as credit cards, although they are basically the same product. Usually, the first loan an individual will take out is a credit card as they are relatively easy to obtain, and as the limit can be set at only $1,000, they are an excellent way to improve your credit rating. To be approved for most small loans, you'll need to have a regular income (employment, pension, or government payments) and the capacity to pay the loan back comfortably. In addition, all applicants will need to be assessed for their ability to repay a loan, which means looking at your current expenses and seeing what you can afford. 

It doesn't cost anything to apply for a credit card, and with Ozzie Loans, you can complete that application in about fifteen minutes. After you enter your personal details (including your monthly expenses), we'll provide you with an answer regarding approval in a few minutes. After approval, you'll have access to the funds as soon as the card is set up. All of our cards are virtual, and they can be installed on your phone, similar to Apple Pay or GPay (Google Pay). The virtual cards can be used at any location that accepts PayPass or Tap&Go transactions. 

To apply for online loans with Ozzie Loans, you must be an Australian permanent resident and have a regular income. The application process will only take a few minutes to fill out, and you'll receive an answer regarding approval shortly after you apply. We use advanced technology to decide if you're a good candidate for our cash loans, and the approval decision is completed quickly, which is ideal if you need money quickly.

What is a line of credit good for?

In addition to helping you demonstrate a good credit rating, a line of credit is excellent for any time you need cash fast. Having access to this type of loan can provide you with backup funds for when life hits you with those regular ups and downs. The way you use a line of credit is totally up to you, but some people use them to help pay for bills, especially the large ones such as heating in winter or your regular electricity bill. Having accessible funds available at all times can assist you in weeks when you need to spend a little more than your regular salary allows, such as when you're on holiday.