Using your home equity line of credit for home improvements, consolidating your high-interest debts, or keeping a "rainy day" fund, is a better financial alternative than using your credit cards. Here are the top 4 home equity line of credit benefits:
- You get a lower interest rate than you would with your credit cards. That means you pay less interest over the life of the loan.
- You get tax advantages that are not available with credit cards. With a home equity line of credit, the interest is usually tax-deductible. Interest on credit cards is not tax-deductible.
- You get flexibility in your payment options. Lenders like Quickerlend offer interest-only options to help make your payments more flexible. With an interest-only home equity line of credit, you have the option to pay only the interest for a pre-determined amount of time or pay interest plus as much or as little principal as you want.
- You get much larger credit limits. Quickerlend offers home equity lines of credit up to $500,000. This is a great option to have when making a large purchase, such as remodeling your kitchen or adding an addition to your home.