How to Get an Unsecured Line of Credit

An unsecured Line of Credit offers a flexible way to borrow money that doesn’t require you to take out one lump-sum payment. Instead, it works kind of like a credit card in that it allows you to withdraw funds as needed up to your approved credit limit (which is determined by your lender).

Best of all, you’ll only pay interest on the amount you borrow, not the entire credit line!

At Advance America, we offer unsecured personal Lines of Credit online or in-store. Here’s a closer look at Lines of Credit, how they work, and how to get an unsecured Line of Credit.

What is an unsecured Line of Credit?

An unsecured line of credit is a revolving credit account that lets you withdraw funds whenever necessary, up to your set credit limit. You’ll only pay interest on the money you take out, and you can repay your loan all at once or over time.

With a personal Line of Credit, you don’t need to provide an asset, like your car or house, as collateral. Instead, getting approved for an unsecured Line of Credit will depend mostly on your income and credit history.

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How to get an unsecured Line of Credit online

Opening a Line of Credit is as easy as applying online from the comfort of your home. Before hitting that submit button, however, make sure you follow these steps:

1. Understand the credit and income qualifications

Lenders who provide online Lines of Credit need to determine your ability to repay them. Once they do that, they can establish your maximum borrowing limit.

Depending on your lender, you may need a good credit score, a steady income, or both. Borrowing amounts vary by your state and eligibility, but typically range from hundreds to thousands of dollars. Visit our Line of Credit page to get an estimate of what your maximum borrowing amount will be.

2. Review unsecured Line of Credit providers

Since many lenders offer Lines of Credit online, do your research and ensure the one you choose is trustworthy and reliable. Check lender ratings on review sites like Google or Trustpilot and read what real customers have to say about each lender. While no lender will have a perfect score, you should opt for one with a high rating and an overwhelming number of positive reviews

. With over 25 years of experience, Advance America is proud to have earned our 4.8-star Trustpilot rating.

3. Submit your online Line of Credit application

Before you fill out and submit an online Line of Credit application with a trustworthy lender like Advance America, be prepared to provide the following information to ensure a smooth process and fast funding:

• An active checking account (you’ll need your bank’s ABA and routing numbers)
• Social Security number
• Employment and income information. In some cases, you may be asked to provide proof of income, like a recent pay stub.
• A working email address

If you are applying at an Advance America location, you will need these same documents and information to complete your in-store application.

4. Know your Line of Credit terms

Carefully read the terms of your unsecured Line of Credit. Make sure you understand when you’ll be able to withdraw money and when you need to make a payment.

Also, note that interest charges will only be applied to the amount you withdraw. Talk to your lender for clarification if you’re unclear about any information outlined in your terms

5. Withdraw money as needed

With an unsecured personal Line of Credit, you can borrow as much or as little money as you’d like up to your credit limit. This flexibility is great as it allows you to match your fluctuating expenses and needs. Remember, as with any type of financing, you should only withdraw the amount you need.

6. Repay the loan on time

Once approved for an unsecured Line of Credit, you should immediately create a repayment plan, as on-time payments can help you avoid unwanted fees.

Benefits of an unsecured Line of Credit

If you're on the fence about opening a Line of Credit, it’s worth noting that this type of loan offers:

• A fast and easy application process.
• Flexible terms and conditions.
• Concrete repayment terms that are easy to keep track of.
• No need for collateral.
• Access to more money than is typically offered with a Payday Loan or Cash Advance.
• The ability to withdraw money as needed.
• Lower interest rates than many credit cards.

Plus, you only need to apply for a Line of Credit once. It then stays open indefinitely for you to use (as long as money is available).

Reasons to get an unsecured Line of Credit

Generally speaking, once you know how to get an unsecured Line of Credit, you can use the money for almost anything. Here are some of the most common reasons people apply for these types of loans:

Cover emergency expenses

Having an unsecured Line of Credit can give you immediate access to funds for emergencies. This could include covering unexpected costs for a funeral, medical procedure, or ER visit. Emergency expenses can also include things like auto repairs, unexpected water damage to your home, or because you need to replace your water heater.

Lines of Credit are a good option for these emergency expenses because the application process is fast, easy, and straightforward. You can usually apply for and access your Line of Credit within minutes or hours rather than days.

Consolidate debt

One of the most common reasons people open a Line of Credit is for debt consolidation. Debt consolidation is where you apply for a loan and use the money to pay for multiple existing loans. That way, instead of paying numerous loans to various lenders, you will have a single loan, making your debt easier to track and repay.

Because Lines of Credit often have favorable interest rates, they can be a good option for paying off several, smaller debts.

Remodel your home

If you’re in the process of renovating, you may need to access more funds than you currently have in the bank. If that's the case, opening a Line of Credit can be a good option because you control how much money you withdraw.

Get an Advance America unsecured Line of Credit today!

Advance America offers personal Lines of Credit that can give you easy access to funds whenever you need to cover expenses. You can apply in minutes online from the comfort of your home or at your nearest Advance America store.