Personal Loan Alternative
Personal loans are unsecured loans that a borrower can get from financial institutions, such as banks. They are called unsecured loans because they do not require collateral. When cash is needed immediately, unsecured personal loans can be an attractive option because they are typically easy to obtain and funds can be received within one business day. A downside to these types of loans however is that they are one-time loans that do not provide revolving credit that could be useful for future need.
Are There Other Options?
A line of credit from Ladder Credit is an alternative to a personal loan with minimal eligibility requirements so that consumers can qualify for the funding they need. A line of credit is an account that can provide a borrower with additional funds, up to their approved and available credit limit. Lines of credit provide a way of meeting urgent and unexpected financial needs. While a line of credit may share similarities with a credit card, it is important to note how they are different.
Personal lines of credit are a separate account into which approved credit funds are deposited and available for a borrower to withdraw. A borrower can request a draw online, or over the phone during normal business hours, for any amount up to their full available credit. Because borrowers are not required to withdraw their entire approved amount, they can save money on interest by only requesting a draw for funds they need. Draw requests may be processed and funds transferred to the borrower’s personal checking account as soon as the next business day. Once funds are in the checking account, they may be withdrawn as cash – which is useful in circumstances when a service provider doesn’t accept credit cards.
Credit cards typically limit cash advances to a percentage of your total credit line. When you’re in a bind and need cash quickly, having a personal line of credit may be an option. Like personal loans, a personal line of credit does not require collateral. One benefit to a personal line of credit is that the revolving credit line makes funds available to borrow again as soon as your balance is paid down.
What Are the Eligibility Requirements?
To be eligible for a line of credit, borrowers must meet basic applicant requirements which may include, but are not limited to:
- being age 18 or older
- having no history of bankruptcy and having no intention to file
- having a regular source of income that meets minimum income requirements
- having a checking account that meets minimum open duration requirements
Ladder Credit does not extend lines of credit to active duty military, their spouses, or dependents, and additional restrictions & limitations may apply.
How Does It Work?
The process of getting a line of credit is simple. Applicants fill out a form through our secure and confidential website. During normal business hours, applicants can typically expect a call from a representative within 15 minutes after form submission to verify information. Once approved and after loan documents have been signed and submitted, the line of credit will be set up and borrowers can request a draw to be deposited into their personal checking account as soon as the next business day.
For many who find themselves in a financial bind and don’t know where to turn, they often think of personal loans. At Ladder Credit, we want you to know that an alternative solution is available for short-term borrowing. With a personal line of credit from Ladder Credit, you can quickly and easily get the cash you need in the form of a revolving credit line. Apply today!