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Lines of Credit

A line of credit is generally an open-ended loan or loan-like option that allows you continuous access to a set amount of capital.  When you take some of the capital for use, you're charged interest on the amount of capital you use.


This can be advantageous in a number of ways; instead of waiting until you need a loan tomorrow, you can take the line of credit now, and use it as needed.  Of course, this works best if you pay it all back immediately – or as quickly as possible, in order to avoid interest.




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