Credit Card Debt

Line Of Credit Rules


Line Of Credit


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Answers

irs rules on home equity line of credit?



That's why whenever you apply for a home equity loan....they don't really tell you. They alway say consult your tax advisor.

Technically it's not legal, but it's in a "gray" area of the law.

I know of tons of people who have taken the interest off their taxes and haven't been challenged. I would not worry about it.

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I have an open unsecured biz line of credit. Can I use it to buy a car for my personal use?

I originally used the credit line to buy into a business. I have since sold my share in the business, paid off the loan in full and the credit line has remained open. I would now like to buy a car (that has nothing to do with the business). The interest rate is low and it would be easier to use the credit line rather than having to get a new loan. Are there any rules or restrictions to do this?


Don't risk it. Try your bank for another loan. Evidently you have good credit already. So, it is possible that the rate of interest will be fairly reasonable. But, whatever you decide, just don't fall for the scams being offered to loan you thousands of dollars over the internet.

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Does a co-signer need to be on the title to apply for a home equity loan or a home equity line of credit?

I'm thinking about applying for a home equity loan or line of credit for my home but am discouraged by my below average credit score. To refinance, any and all applicants must also be on the title document, so would the same rules apply on a home equity loan or line of credit?


Anyone cosigning for something such as that would have to be on the deed to qualify. Otherwise is is not a home equity loan but a personal loan.

How much to ask for credit line increase?

What rules should I be going by?


the minimum amount you need to support your plans. You do not want too much credit it can get you in trouble. Additionally if you have too much open credit it can prevent you from getting a loan or CC some where else.

If I use an unsecured line of credit to make payments on my 1st or 2nd home, is the interest 'tax deductible'?

If possible, please provide a link to any IRS publication or ruling (www.irs.gov). Thank you.


The interest on the two mortgages is deductible, but if you're borrowing money to pay loans, then the money you are borrowing that is unsecured is not deductible.

The loan must have a mortgage filed against it to be deductible.

You can not borrow your way out of debt. You need to sell the house and get your financial housekeeping cleaned up. This is a very bad plan!


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