What is the Difference Between a Home Equity Loan and a Line of Credit?

1
Premier Credit Plus
2
What is the Difference Between a Home Equity Loan
and a Line of Credit?
3

• The primary benefit of homeownership is building
  up your equity. Your property can increase your
  wealth over time. This increase only comes about
  when you sell your home or borrow against it. 
  When it comes to borrowing the money, there are
  many options to choose fromhowever, we will
  focus mainly on home equity loans(HELOANs) and
  home equity lines of credit (HELOCs). Each loan
  will have advantages and disadvantages, so choose
  wisely.  As these options are both forms of
  credit, we would look ateverything credit  fix
  my credit score,buildmy credit score, improvemy
  credit score, and boost my credit score.

4

• To begin with, you need to know your credit
  score.  Once you have determined this, you can
  start fixing/building your credit score.  Then
  you can find ways to boost your credit score!
• A Home Equity Loanis paid out to you in a lump
  sum.  You and your bank agree on an amount, and
  you receive the amount in a single transaction. 
  Considerations include the following
• Spending You can receive a large sum of money in
  one go.  This amount will fund any
  significantexpenses that you may have and can be
  kept in your checking account. Keeping these
  funds in your checking account and using the
  funds directly from there will enable you to
  build a credit history, which is paramount for
  improving your credit score.

5

• Payment These payments are made through monthly
  payments.  The payment amount and interest should
  remain constant.  The bank will set up a payment
  schedule for you that includes any interest
  incurred.  These regular payments that are paid
  on time EVERY month will allow you to fix your
  credit score.
• Interest rates Fixed interest rates assist with
  scheduled, predictable payments, which,in
  turn,allows you to plan accordingly. On account
  of there being no surprises, building up your
  credit score with this feature is an excellent
  perk.
• Interest cost Interest is charged on your entire
  loan amount and will be highest at the start of
  your loan. 

6

• A Home Equity Line of Credit has a flexible
  offering.  It provides amaximum limit on which
  you and your bank have agreed.  You are allowed
  to draw from thefunds multiple times, and it
  works much like a credit card.  This procedure,
  too, will be of enormous value when looking for
  ways to improve your credit score.  Cash is being
  used when you make the withdrawal.  In turn, cash
  is being replaced when you make the payment,
  granting you the ability to continue to build
  your credit history.  Considerations include the
  following
• Spending Typically, you will have a 10-year
  window from which to draw.  You can withdraw
  funds as many times as you need. Examples of
  methods to access these funds are as follows 
  write a check, transfer a sum into your checking
  account, or use a card linked to the loan.Using
  the money only as and when you need it is an
  excellent way to boost your credit score,
  enabling you to keep a close eye on your money
  and using youravailable credit when necessary.

7

• Payment During the loan, you can make
  small interest-only payments on the allocated
  debt before you start your repayment period. 
  When the repayment period begins, no withdrawals
  may take place. Timeous, regular payments will
  blaze the trail for boosting your credit score. 
• Interest rates These rates will vary, but if the
  rates rise, so will your costs.
• Interest costs These costs can be kept at a
  minimal rate if you use the money only as and
  when you need it. 
• The borrowing amount is,for the most part, the
  same for both.   In most instances, your bank
  will allow you to borrow up to 85 (which will
  have an incredible impact on building your credit
  score),and this will include any existing debt
  that you may have.  There may be instances that
  allow you to borrow more than 85. However,
  should you choose to do so, you will incur higher
  interest rates and costs.

8
When a HELOC is chosen over a HELOAN and vice
versa

• HELOC
• Flexibility
• There is no need to apply every time you require
  funding.
• Over the ten years, you can withdraw and repay as
  often as is required, assuring you of a maximum
  available credit at all times.  This access will
  be fantastic for a credit score boost. 
• Interest loans minimized
• When you borrow money, you pay interest. Should
  the funds go untouched, no interest is levied,
  thereby improving your credit score.

9

• HELOAN
• Predictability
• A payment schedule is arranged for you, and you
  know ahead of time what your monthly payments are
  for the duration of the loan. The ability with
  features to build your credit score is
  enormous.   Not only can you build your credit
  score, but you can lay the foundation for
  repairing your credit score. 
• Consolidation of debt
• Car loans and credit cards can be risky if you
  use your home as collateral.  You may increase
  your secured debt, which is not the desired goal.

10

• By comparing the two options, a home equity loan
  (fixed) versus a home equity line of credit, you
  will soon learn which option will suit your needs
  better.  A HELOC is best for upcoming expenses
  that are not set in stone, while a HELOAN is
  apreferred choice when you have a set amount to
  pay.
• Upon understanding the difference, choosing
  between these two options should be carried out
  hand-in-hand with various offers received from
  various banks.   Two to three offers minimum
  should allow you to make an informed decision
  when looking at banks that offer the lowest
  interest rates and the fewest fees, saving you
  money in the long run.  When choosing any
  financial products, having an arsenal of options
  will ensure that you make the best decision for
  YOU. Contact us 844-829-2292

11
Contact Us

• Address  147-08 235 Street Rosedale NY 11422
• Phone [phone]
• Fax - 844-829-0960
• Email info_at_premiercreditplus.com
• Website https//premiercreditplus.com/