Line Of Credit | What is it? How does it work?

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  • เผยแพร่เมื่อ 22 เม.ย. 2020
  • Line Of Credit | What is it? How does it work? - Debt Free In 30- Personal Finance Explainer - Doug Hoyes, a Licensed Insolvency Trustee and host of the Debt Free In 30 podcast, gives us the basics of what a line of credit is and how it works.
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    #LineOfCredit #Credit #LOC #DebtFreeIn30 #DFI30 #FinanceExplainer #Debt #DebtFree

ความคิดเห็น • 47

  • @kalebsotero5472
    @kalebsotero5472 3 ปีที่แล้ว +150

    thank you for this. i’m 13 and doing my research on credit cards and just being smart with my money so i’m more prepared for the future. you explained it well

    • @ThePrototypeClutch
      @ThePrototypeClutch 3 ปีที่แล้ว +21

      Good job buddy

    • @username7456
      @username7456 2 ปีที่แล้ว +2

      Wow doing that at your 3 , that's wise man
      Keep it up

    • @monikaleszko5343
      @monikaleszko5343 2 ปีที่แล้ว +2

      Get one with good cash back % and no fees to start.

    • @Ah-fb8pc
      @Ah-fb8pc 2 ปีที่แล้ว +1

      Going to be quite a few years till they give you a line of credit but good to know this stuff

    • @goldenstandard187
      @goldenstandard187 2 ปีที่แล้ว +4

      YOUR LUCKY MY ADVICE F BANKS GET A CREDIT UNION USE CREDIT INSTEAD OF DEBIT AND GET A LINE OF CREDIT AND PAY IF BACK

  • @ketwmact
    @ketwmact 3 ปีที่แล้ว +4

    Thank you...this was quick and simple. I appreciate the info greatly.

  • @captainofcommerce
    @captainofcommerce 4 ปีที่แล้ว +19

    Learned a lot. Thank you for sharing your knowledge.

  • @djandres6847
    @djandres6847 3 ปีที่แล้ว +5

    Thank you

  • @OGunman
    @OGunman 2 ปีที่แล้ว +1

    Great information, as I was just pre-approved. Thanks for the tips!

  • @carpediemyoungkbrian
    @carpediemyoungkbrian 3 ปีที่แล้ว +4

    thank you for the simple and understandable explanation. I have a question, it is not in the video but what is 'pegged to prime' supposed to mean?

  • @robleahmed2558
    @robleahmed2558 ปีที่แล้ว

    Amazing channel. I liked and subscribed the channel.

  • @beckz4952
    @beckz4952 ปีที่แล้ว +1

    Thank you!

  • @reaktorleak89
    @reaktorleak89 2 ปีที่แล้ว +1

    60%?! Thanks for the explanation.

  • @surreallife777
    @surreallife777 ปีที่แล้ว

    Great shows. I’m trying to get a line of credit for the very first time in order to purchase a townhouse. The girl I am dealing with at the bank wants to lock in a term for a secure a rate. There are 2, 3, 4, or 5 year rates typically. What’s your advice? I don’t want to make a mistake. Thank you,
    Michael.

  • @minutescouldsaveyoupercentormo
    @minutescouldsaveyoupercentormo 2 ปีที่แล้ว

    What’s a type of loan I can use to pay my employees during slow seasons?

  • @TheJohnnySilver1
    @TheJohnnySilver1 2 ปีที่แล้ว +2

    I still don’t understand.. i just got my credit from capital one and it has a 300 credit line but no balance does this mean i can only put in like at least 300 dollars in that card?

  • @ygbodybuilder3023
    @ygbodybuilder3023 11 หลายเดือนก่อน

    Let's say if I use money from my line of credit and pay it back the exact same day will I have to pay interest

  • @zacharyharwell351
    @zacharyharwell351 ปีที่แล้ว

    Not sure if this is still being monitored for comments or not but I'll ask anyway for those reading:
    Would a good use for a Line of Credit be 'buying' things you have the money to buy, but don't want to spend that money just yet?
    For example, say you have an LOC for about $2500 dollars. There's something you want/need and it costs $1000 dollars. You HAVE about $1500, so you COULD get it with straight cash (or a cash stand-in of course), but you just don't want to spend 2/3 of your current cash on this item, so you use your LOC and pay it off in chunks over time.
    Is this a valid way to use an LOC?

    • @opsisone
      @opsisone ปีที่แล้ว

      The best use of a line of credit is to buy something that will create income of some sort or as a stop gap for a temporary need as you wait for a cash influx. It should.not be used for wants, though it can be. It is not a good use.

  • @robleahmed2558
    @robleahmed2558 ปีที่แล้ว +2

    Thank you for the info, but are you American or Canadian.Are you talking about in Canadian banks or American banks?

    • @DebtFreein30
      @DebtFreein30  ปีที่แล้ว +2

      We are Canadian!

    • @jabbacoola1
      @jabbacoola1 ปีที่แล้ว

      @@DebtFreein30 So the bank offered me a line of credit but I don't need it Should I take it?

  • @drbh6331
    @drbh6331 10 หลายเดือนก่อน

    Which banks will give me LOC

  • @markburn4943
    @markburn4943 2 ปีที่แล้ว +2

    54k views 800+ likes that's insane smh...

  • @steakovercake3986
    @steakovercake3986 3 ปีที่แล้ว +8

    So if i have a loc of 30000 but dont use any for 3 months i pay 0 interest?

    • @karlisoutar7027
      @karlisoutar7027 3 ปีที่แล้ว +14

      Yes! You only pay interest once you use the money! You could have it sit in your account for years and as long as you aren’t using it, you don’t pay any interest

    • @coolstuff7372
      @coolstuff7372 3 ปีที่แล้ว +8

      This is one of the first thing it said in the video that went in one of your ears and out the other without stopping for a coffee break at the brain.

    • @briannal9244
      @briannal9244 3 ปีที่แล้ว +16

      @@coolstuff7372 shut up

    • @juanito3821
      @juanito3821 2 ปีที่แล้ว +1

      What if you only use $600 out of the $30,000 and you pay the $600 in full at the end of the month. Would you still have to pay interest on it the next month if the balance is back to $30,000?

    • @arnousteele4845
      @arnousteele4845 2 ปีที่แล้ว +2

      @@juanito3821 you would owe interest on the $600 immediately

  • @cbrooks0905
    @cbrooks0905 2 ปีที่แล้ว

    Why would anyone want to do this?