Revolving Credit Line

I've just been offered a us bank worldperks visa signature card with a no credit limit with a $7,000 revolving credit line...Can someone please break it down for me...What exactly is a revolving credit line?
They say I have no credit limit, but yet a $7000 revolving limit...I'm a little confused

A revolving line of credit is where you use it, and then you pay it off. You use it, then pay off some more. The balance should keep going up and down. Hence the revolving part. I would go through your bank for a line of credit and not visa. The interest rates on these are VERY high, ranging from 19-42%. You can generally get a much better rate from your bank with a secured or unsecured rate which either stays stable or floats with the market. GOOD LUCK :)

2008-07-21 17:10:03 by lost of thought

A revolving line of credit is money from a credit card, loan or second mortgage that is available for use to the borrower. Avoid using credit ...

I am in the process of starting my own business and I am requesting a line of revolving credit from a financial institution. How much collateral do I need (in %)? Is there a "best" way of offering collateral in this case? Or simply a savings account with x dollars on it?

Quite often, with startup business' such as yours, the bank really won't recognize the business and just give you a personal line instead, in the "Name" of the business.

2007-05-01 04:08:39 by eddievanhalen

Re phrase the question!

I think you are asking if you should borrow from a line of credit to buy a portfolio of factored invoices(accounts receivables)?

2006-03-14 12:47:16 by Jose

Explain the difference between a promissory note, a line of credit, and a revolving credit agreement? Are they mutually exclusive? That is, might one be part of the other?

From the standpoint of the borrower, a promissory note is a debt obligation where the full amount if borrowed at one point in time and the payment obligation and interest are set forth in the note itself. Usually it will be due at some future maturity date, with the note being able to be called during certain contingencies. You may or may not be able to prepay it and it may or may not be secured (i.e., if you default, they may be able to have a priority interest in claiming secured assets or they may be pari passu with other unsecured creditors).

A line of credit is an arrangement where a certain maximum can be borrowed and you only pay interest on the amount borrowed (its sort of like a credit card).

A revolver is a variant of a line of credit where you pay a commitment fee on the maximum amount that may be borrowed and that otherwise is like a line of credit. They are not mutually exclusive in the sense that a revolving credit agreement is a type of line of credit. A promissory note is not a line of credit nor a revolver.

Often when banks lend to companies they'll put together a credit facility that will consist of a set of term loans (so essentially, promissory notes -- set amounts borrowed up front at stated maturities) and a revolver.

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2007-06-25 12:29:02 by collegemomagain

My husband has a line of credit with US Bank. He fell behind on a payment and they took the money out of our joint checking account. I never signed the loan and half of the money in the bank was mine. What can we do? They paid themselves $3400.00

When you have a joint checking account half the money isn't yours. The FULL amount belongs to both of you. It's community property between spouses. You both have full ownership of the money in the checking account so U.S. Bank can take all the money out even if the loan is only in your spouses name. It kind of the same concept of you writing a check for $3000.. you and your spouse don't have to sign the check.. only one of you.

Now that being said, what U.S. bank did isn't right, unless the $3000 was the amount your husband was behind.

2007-08-03 12:34:43 by reindeer dippin