What’s the difference between a Line of Credit and a loan?
A loan is usually for a fixed amount, with fixed payments, and is paid off over a set time. And that’s it, it’s finished. If you ever want more money you have to go through the whole application process again (and pay the fees) with success uncertain.
A Line of Credit sets a level at the start, up to which you can borrow whatever amount you desire, whenever you want, and re-pay as quickly, or slowly, as you wish giving you flexibility, control and certainty.
If you think you will only need funds once in your lifetime – take out a loan. If you think you might need funds more than once, a Line of Credit is a better solution.
How it works (1,2,3!)
Step 1 Get a credit level
You provide your details and the &Solved team assess their information to give you a credit level between $2,000 and $20,000 depending on your income, expenses and credit history. There is no cost for this, no application fee, and it’s usually done within 24 hours.
Step 2 Get cash
Once your application has been approved, you can withdraw money up to your Credit Level at any time. The minimum first drawdown is $2,000, thereafter a minimum of $1,000 each time. You decide how much you want to draw out and when you want it, and it is deposited into your bank account, usually within 24 hours. There is no cash advance fee.
Step 2 Pay quicker & save
Interest is between 14.99%pa and 22.99%pa. The rate is assessed on your income, expenses and credit history and is charged only on the actual amount owing. We agree in writing the interest rate at the start and there are no penalties, for paying early or in full. Anything paid today doesn’t get charged interest tomorrow.
We require a minimum repayment each month of 3% of the outstanding balance, or $30, whichever is greater. You are able to pay more anytime, without any penalties and save money!
We believe that taking out a loan should be easy and hassle-free. Everything from the application process to repayments is completely done online, which means that you spend less time filling out forms or lining up at the bank, and more time doing the things you love with the people you care about. Repayments can be monthly, fortnightly, weekly and one-off as funds become available.
There are no application fees, no cash advance fee, and no early repayment or finalisation charge of any kind. The only charges are the interest and $10 a month account keeping fee when money is owing. When no money is owing, the account fee is zero and you are not charged any interest.
Peace of Mind
Anything undrawn below the Credit Level can be drawn anytime. When an account repays in full, the facility remains open to be drawn against, up to the credit level. So, you have a ‘cash buffer’ for whenever a problem or an opportunity comes up. This is provided by &Solved at no cost.
Set and Forget?
Not quite! But you can forget about worrying whether you will get a loan next time you need some cash. You can forget about constantly having to re-apply to banks or finance companies and the hassle and intrusion each time. You can forget about struggling to meet high re-payments – if you’re going through a tight patch you can just pay the minimum, and boost it up again when you’re flush, to save interest. You can remember to enjoy life knowing you are better prepared to handle problems and take advantage of opportunities.
Everything is plain and simple. We agree everything between us up front. Interest rates and charges are agreed in writing prior to opening the Line of Credit. We will never charge anything which has not previously been agreed.
“Line of Credit – A Better Solution”