Top 6 Reasons why you should NOT use your Line of Credit to Pay for a Vehicle.
1. Interest rates fluctuate with prime which can result in variable payments.
– Unknown interest and unknown terms
2. Lines of credit are designed for emergencies and investment opportunities.
– Don’t get caught without a backup plan
3. Many lines of credit are secured by your home; credit providers consider this a second mortgage
– Default of payment for any reason allows the bank to repossess your home.
4. Lines of credit were designed as interest only loans
– Interest only payments result in long term liabilities without assets
5. Your credit line is a demand note.
– Your bank has the right to demand payment in full, at their discretion, at any time, with or without cause. If you do not have the cash to pay off your line they will use their “Right of Offset”.
6. Our full service finance team represents all major banks and can negotiate the best terms and conditions on your behalf
– Fixed term open loans save you money and allow you to trade sooner.