Credit that is there when you need it and costs nothing when you don’t.
A Personal Line of Credit gives you an approved credit limit you can draw from as needed, repay and use again. You only pay interest on what you actually borrow. If you never draw from it, you pay nothing.
Here is how a line of credit actually works.
Your credit limit is always there when you need it.
Your approved credit limit is the maximum amount available to you at any time. When you draw funds, that amount is deducted from your available credit. As you repay, your available credit is restored and ready to use again.
It resets every time you repay.
If you have a $10,000 line of credit and draw $3,000, you have $7,000 remaining. Once you repay the $3,000, your full $10,000 is available again. You can repeat this cycle for the life of the line without ever reapplying.
Access is fast and straightforward.
Transfer funds directly to your Firefighters First checking account through Online Banking or Mobile Banking. No branch visit required and no waiting when you need it most.
Here is how the Fire Family uses a line of credit.
Here are the most common ways our members put a line of credit to work.
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Cover expenses between pay periods or leave. -
Handle unexpected car, medical or home costs.
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Consolidate high-interest debt into one balance.
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Manage home improvement costs in stages.
How a line of credit compares to other options.
A line of credit sits between a credit card and a personal loan in terms of how it works. Here is how it stacks up against each one.
Line of Credit vs. Credit Card.
Both are revolving, but a credit card typically carries a higher interest rate, is designed for everyday purchases and may earn rewards. A line of credit generally offers a lower rate and is better suited for larger, less frequent draws when you need more flexibility.
Line of Credit vs. Signature Loan.
A Signature Loan gives you a fixed lump sum with fixed monthly payments and a defined payoff date. It is the better fit when you know exactly how much you need. A line of credit is the better fit when your needs are unpredictable or ongoing.
Line of Credit vs. HELOC.
A HELOC is secured by your home equity, which typically means a lower rate. But it requires home equity, involves a longer approval process and puts your home on the line. A Personal Line of Credit requires no collateral and is available to all members regardless of whether they own a home.
Everything you need to know about lines of credit.
What is a Personal Line of Credit?
A Personal Line of Credit is a revolving, unsecured credit account with an approved limit. You draw from it as needed, repay what you have used and your available credit is restored. You only pay interest on the amount you have borrowed, not on the full credit limit.
How are Lines of Credit different from a Personal Loan?
A personal loan gives you a lump sum upfront that you repay in fixed monthly installments over a set term. A line of credit is open-ended. You draw and repay as needed, and your available credit renews as you pay it down. A loan is better when you know exactly how much you need. A line of credit is better when your needs are unpredictable or ongoing.
How are Lines of Credit different from a Credit Card?
Both are revolving forms of credit, but a Personal Line of Credit typically carries a lower interest rate than a credit card. It is also better suited for larger draws rather than everyday purchases. Funds are accessed by transferring to your checking account rather than by swiping a card.
How do I access my funds?
You can transfer funds from your line of credit directly to your Firefighters First Credit Union checking account through Online Banking or Mobile Banking. Funds are available quickly once transferred.
What is the interest rate?
The rate on a Personal Line of Credit is variable, based on the Prime Rate as reported in The Wall Street Journal plus a margin between 4.24% and 14.24% APR. Your specific margin is determined by your credit history at the time of application.
Do I pay interest on the full credit limit?
No. You only pay interest on the balance you have actually drawn. If your line of credit has a $10,000 limit and you have drawn $2,000, you pay interest only on the $2,000.
* APR = Annual Percentage Rate.
Subject to credit approval. Variable loan rates are based on the Prime Rate as reported in The Wall Street Journal, plus a margin between 4.24% and 14.24% APR, which will be determined by applicant’s credit history. APR subject to increase after consummation.
For current rate information, please visit our Rates page.