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Overview
A personal line of credit is a flexible, revolving credit option that allows you to borrow money up to a pre-approved limit as needed. Think of it like a credit card, but with a higher credit limit and more flexible repayment terms.
With a personal line of credit, you can use the funds for any purpose, from home renovations to unexpected medical expenses to travel and leisure. You only pay interest on the amount you borrow, and as you pay back the principal, the available credit replenishes so that you can use it again.
It’s an excellent option for those who want the flexibility and convenience of a credit card but with lower interest rates and more manageable monthly payments.
People Driven Credit Union is a full-service credit union with branches and ATMs that are easily accessible around Metro Detroit and Southeast Michigan.
How a PLC differs from other loans
A personal line of credit differs from a traditional personal loan in that you don’t have set payments over a specific repayment period.
Personal line of credit advantages:
- Only pay interest on money when you need it
- If your income fluctuates, a credit line can cover bills during slow times
- Interest rates can be lower than most credit cards rates (depending on credit rating)
- Easily transfer money when needed using our mobile app
- A personal line of credit can be a great source for an emergency fund
- Having a separate loan account (instead of credit cards) may help you stick to a budget or control your spending.
The downside of a Personal Line of Credit
- It can be dangerous for people who tend to overspend.
- They may be hard to qualify for if you don’t apply when your finances are in great shape.
Rates can be lower Than Credit Cards.
Interest rates may be comparable with or lower than those you can get for credit cards.
We recently had a death in the family, The Team at PDCU was kind, caring and emphatic.
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Rates
Rates
Overdraft Protection Line of Credit (ODLOC) Rate
Type
Minimum Payment
(Months)
APR*
(ODLOC)
Line of Credit/Overdraft Protection3% of Balance, $30 Mininum 14.20% -
FAQs
Frequently Asked Questions
A personal loan can impact your credit score in several ways:- Positive Impact: Making on-time payments can improve your credit score.
- Negative Impact: Missing payments or defaulting on the loan can harm your credit score. Additionally, applying for a loan results in a hard inquiry, which may temporarily lower your score.
Personal loans can be used for a variety of purposes, including:- Debt consolidation
- Home improvements
- Medical expenses
- Major purchases (e.g., appliances, electronics)
- Special events (e.g., weddings, vacations)
- Emergency expenses
Yes, it is possible to get a personal loan with bad credit, but it may come with higher interest rates and stricter terms. Consider lenders who specialize in bad credit loans, or use a co-signer to improve your chances of approval and secure better rates.- Secured Personal Loan: Requires collateral (e.g., a car or savings account). Offers lower interest rates due to reduced risk for the lender.
- Unsecured Personal Loan: Does not require collateral. The interest rate is based on your creditworthiness and may be higher than secured loans.
A credit line allows you to borrow in increments, repay it and borrow again as long as the line remains open. Typically, you will be required to pay interest on borrowed balance while the line is open for borrowing, which makes it different from a conventional loan, which is repaid in fixed installments. A line of credit will have a set limit in which you will be approved for and you can borrow based off the limit.You may give us a call at 248-263-4100 to speak with the loan department.PDCU has partnered with GreenPath Financial Wellness to help our members get back on track with their finances and credit. Please call GreenPath at 877-337-3399 and let them know you’re a PDCU member and would like to make an appointment with a rep!Yes! All eligible loans can be skipped once per calendar year for a fee of $35. Fresh Start Auto Loans, Lines of Credit, Mortgages, Commercial Loans, and Credit Cards are excluded.- To make a payment via online banking with funds already in your account, log in and select 'transfers'. Select where you want to transfer from and which loan you would transfer to.
- Log into iTalk (telephone teller) and make your payment. Option 3 for payments.
- To make a payment with a debit/credit card, call (248) 263-4100.
- Set up an auto-transfer from your People Driven account or attach an auto payment to your direct deposit that comes into your account. Give us a call at (248) 263-4100 or stop by any of our five branches.
- Have us set up an auto-payment from your other financial institution. Please call us at (248) 263-4100, and we can send you the proper form, or you may stop by any of our five branches.
- You may also mail in a check payable to People Driven Credit Union, 24333 Lahser Rd, Southfield, MI 48033
Disclosures
*APR = Annual Percentage Rate: The actual APR and loan term are subject to approval and may be determined upon the borrower’s creditworthiness, the amount borrowed, and the type, value, age, and condition of the collateral offered to secure the loan (when applicable). Rates are effective as of today and are subject to change.
Special Loan Rate Discount: Benefit from a 0.25% reduction when enrolling in our AutoPay service and is included in the “as low as” rate advertised. The discount is available to those with Direct Deposit of payroll, social security, or retirement and AutoPay setup from a People Driven Credit Union checking or savings account.
Payment Example: Monthly payments of $$23.71 for each $1,000 borrowed at 14.85% APR for 60 months.
People Driven Credit Union is an Equal Housing Opportunity Lender NMLS #776727
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