What is an online credit line and how to get it?

Es mejor una línea de crédito rápido que un préstamo

We can say that a line of credit is an extension of the money available in an account that a bank makes available to a customer who requests it, for a specific period of time and with a maximum amount of money available, all of this established in advance .

Through a line of credit, the account or card holder has available an amount of money, which can be used in whole or in part. This limit is renewed monthly generally towards the beginning of each month.

The client can use his credit extension at any time without exceeding the contracted limit.

Unlike online credits and microcredits , which are normally granted by private lenders, online credit lines have started to be granted for the most part by traditional banking entities due to the growing number of users interested in this type of product .

How to apply for a line of credit?

The credit line is used to finance costs and is used by individuals, organizations and self-employed or self-employed workers.

The conditions between credit extensions for companies and individuals do not differ.

The line of credit is intended for those seeking a progressively adaptable loan repayment and for those seeking the security and reliability of constantly accessible money.

In the event that you need financing to pay for a specific unforeseen event, you can visit our credit website where you can discover lenders who offer the first advance with them at 0% interest.

To apply for a line of credit you must follow the following steps :

  1. Fill in the application form with your basic personal data.
  2. They offer you a maximum credit limit based on your personal circumstances.
  3. You send the necessary documents to verify your identity and the ownership of the bank account where the money will be deposited.
  4. You must also demonstrate a stable income.
  5. Once the contract is signed, you will have the established limit available that you can use totally or partially.
  6. The more you use, the more you will pay in interest, logically.

The return of the money that you are using is carried out comfortably in monthly installments according to what you have agreed with the entity.

The truth is that it is a very flexible loan, you choose in how many installments and the amount of these, to return the borrowed money.

Requirements to request a line of credit

The requirements do not differ much from those necessary to apply for any other fast credit online :

  • Being of legal age, sometimes the lower limit is 21 years, and there is usually a maximum limit.
  • Have a valid identification document DNI, NIE or passport.
  • Have a bank account in a Spanish bank of which you prove that you are the owner.
  • Have access to online banking.
  • Receive regular stable income such as payroll, pension or benefits, or even income of some kind.

What interest do I have to pay?

The interests that derive from a line of credit are not based on the total limit of money established but on what you need from time to time.

For example, if you have contracted a line of credit of 2000 euros and this month you need to use 500 euros, you will pay interest for those 500 that you use, not for the 2000 that is the limit.

The interest that is usually charged for these credit lines ranges from 0.30% to 4.2% depending on the entity with which you contract the product.

You have to take into account that there are more expenses, such as the opening commission or the withdrawal commission, the latter can reach 20%.

Is a fast line of credit better than a loan?

This depends on the situation in which you find yourself, if it is a small one-off expense, we recommend using a personal loan, since you may pay less interest. Sometimes it may even be free if it is the first loan you request from a lender.

If it is a larger expense, or you do not know exactly how much you will need each month, the best is a line of credit since you will pay only for the money you use, so the expense will always be adjusted or what you really use.

Advantages of urgent online credit lines

Before this was an exclusive product of lifelong banks, currently online lenders that granted easy loans have also begun to market this financing product.

The advantages they provide are also influenced by this change in who begins to grant them, adding all the advantages of personal loans:

  • The request is made 100% online. Gaining a lot in comfort and speed.
  • We only pay for the money that is used, regardless of the maximum limit contracted. If it is not used there is no expense.
  • Due to the great competition between lenders we can get very good deals in the market.
  • The processing process is very simple, we can have the money in a few minutes.
  • With almost all lenders we can return the money as soon as possible without entering into cancellation fees.
  • You do not need to explain what you are going to use the money for, travel, studies, new car, etc.