LINE OF CREDIT

Having a line of credit allows you to be in a financial position to access money when you need it - for emergencies, home appliances, car repairs etc. How you use the funds is up to you. A line of credit allows you to overdraw your chequing account within a pre-established limit. The line of credit is accessible for Direct Payment purchases and ATM cash withdrawals.

Since interest rates on a line of credit are lower than with credit cards, it makes sense to use a line of credit as a revolving source of cash. Interest is charged solely on the amount borrowed, and only for the number of days it is used. If you don't use your line of credit, then you don't pay interest, and you can wait to make payments until the end of the month.