February 17, 2021Why Personal Lines of Credit May Be the Best Choice

Many people turn to credit cards when financial fires need to be put out quickly. While credit cards can serve as a solid plan B, a Personal Line of Credit (PLOC) may be a better choice in certain situations.  A PLOC can be used to consolidate debt, make home improvements, pay off higher-interest debts—even help you with unplanned rainy days.  

Understanding the opportunities PLOCs present can help you take full advantage of the services the credit union provides members. 

Benefits of PLOCs 

While some people find the convenience of credit cards in these situations alluring, there are distinct benefits that make PLOCs far preferable in the long-term. These are just a few of the benefits of PLOCs worth considering when exploring your options for fast access to money in an emergency. 

  • Low-interest rate: Interest rates can have a significant effect on your financial life. What you may not realize is that PLOCs offer a real, lower interest option to credit cards. Even better, you can usually apply for the funds and receive a response quickly, which lets you know whether you qualify or need to consider other alternatives.
  • Fixed interest rate: Most credit cards today have variable rates that can rise unexpectedly, easily doubling their rates, or more, once the debt is finally repaid. PLOCs typically have a fixed interest rate that helps provide some consistency when planning and paying for the loan. It’s a huge boon to borrowers that can help them pay off their loans quickly and efficiently.
  • Lower cash advance costs: PLOC is an unsecured revolving line of credit with no collateral securing it. The credit line is issued for a period of time and can be advanced on without additional cash advance fees. That means you have more flexibility.  
  • Opportunity to increase your credit score: Even better, as far as bonuses go, when the PLOC is paid off, your credit score increases.  

We’re Here to Help!
PLOCs are a great alternative to credit cards when you need to manage an unexpected bill or financial hiccup.

Simply stop by any branch location or give us a call at (800) 226-6673 to learn more about our PLOCs and how they can help you when emergencies strike. 

Each individual’s financial situation is unique, and readers are encouraged to contact PEFCU when seeking financial advice on the products and services discussed. This article is for educational purposes only; It does not constitute legal advice. If such advice or a legal opinion is required, please consult with competent local counsel. 

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