Jump Loans is Proud to Offer Lines of Credit in Alabama!

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What is a line of credit?

A line of credit gives you access to a specific sum of money. Once we’ve made a decision based on that amount, you decide how much to withdraw and when to withdraw it. You only pay interest on the funds withdrawn (not on the entire credit line). Repaying what you have borrowed frees up money to borrow in the future, without having to reapply.

Let’s say you have a $2,000 line of credit, and you take out $500 to use for a car repair. That means you have $1500 left in your line of credit to use at your discretion. You will begin accumulating interest on the $500 immediately–but not on the $1500 still left in your line of credit. If, instead of making the minimum payment of $200, you go ahead and pay $300 on your next payday, you will have approximately $1800 in credit available to you (and you’ll only be paying interest on $200, which will ultimately result in less interest paid).

What you need to know:

    • Your minimum payment will change, based on the principal (that’s the amount of money you’ve withdrawn from your line of credit).
    • You can only draw funds that remain unused in your line of credit. Available funds will fluctuate depending based on how much you’ve withdrawn and what you’ve repaid.
    • You do not have to reapply to access funds that remain in your line of credit.
    • You pay interest on the funds you’ve withdrawn, starting the first day you withdraw them.
    • If you make only the minimum payment on your line of credit, in the long run you will pay a greater amount of interest than if you’d repaid the line of credit more quickly.

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