What if you suddenly need to borrow some cash as quickly as possible? Opting to cash from credit card advances will cost you more as the interest rates and withdrawal fees are higher. People in Singapore often get confused between credit cards and credit lines. Both seem similar but are actually not. There are different types of personal loans which are available in this country. However, credit lines is one of the convenient options to loans in Singapore.
Know Credit line
When a bank in Singapore agrees to lend an amount of cash in the form of an agreement, it is known as a credit line. Credit line has a specific limit of an amount and a specific time frame when a bank comes to an agreement. In the case of regular installment, a person taking the loan pays the money along with the interest within a specific time frame. On the contrary, according to credit line you can borrow a flexible sum only whenever needed. Any credit line is applicable when the access to the money is irregular but the expenses are fixed on a monthly basis.
Pay back the amount as quickly as possible to avoid high interest rate applied on any amount of outstanding debt that has remained unpaid. The interest is usually applied regularly. Also, credit line offers fast access to loans and withdraw the amount as soon as the loan is sanctioned. This seems so similar to a usual savings account. The chances of credit line loans are:
- Issuing a cheque that connetcs to the account of credit line
- Withdrawing from an ATM
- Transferring the money to current or savings account
The difference between credit line and credit card
Both credit line and credit card offer instant credit access to a certain limit that you can spent anytime you like. This is the only similarity between a credit line and credit card. Taking a look at the difference, there are no such withdrawal fees when it comes to credit lines. In the case of credit card, you will be charged with an advance cash fee of 6% based on that withdrawn amount or the standard amount S$15 whatever is higher.
The Credit lines are the best sources for emergency cash loans Singapore. Choose a professional and reliable moneylender who can help you with the best solution during a shortage of cash.