Line of Credit
What are the three primary types of credit?
The three pivotal types of credit include revolving credit, installment credit, and open credit.
What categorizes the four levels of credit?
Credit scores should generally be within a range of 300 to 850. Within this range, credit scores are typically classified into one of five categories: excellent, very good, good, fair, and poor.
Who qualifies for a line of credit?
To qualify for a personal line of credit, individuals typically need to have a credit history free of defaults, a credit score of 670 or higher, and a stable income.
What determines the limit on a line of credit?
The limit on a line of credit can vary, ranging from $5,000 to up to 65% of the home’s value, deducting any previous outstanding mortgages. If there are no outstanding mortgages, the limit can extend to a maximum of 65% of the home’s value.