Line of Credit
A line of credit is a type of loan that lets you borrow a pre-set amount of money. You can pay the loan back at any time, and you only have to pay interest on the money you borrow. Money from a line of credit can be accessed using an automated teller machine (ATM), by writing a cheque, or using telephone or online banking to pay a bill or transfer money to your chequing account. Since a line of credit is for a pre-set amount of money, once all the money has been used on a line of credit there is no more money to draw from unless the financial institution increases the amount you can borrow.
Line of credits generally have lower interest rates than a credit card or personal loan, and financial institutions often offer special packages to post-secondary students. This includes, but is not limited to:
ScotiaLine Personal Line of Credit for Students
To learn more about a line of credit or see if a line of credit is right for you, please reach out to your financial institution.