this type of loan 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 the borrowed balance while the line is open, which distinguishes it from a conventional loan, which is repaid in fixed installments.
A line of credit will have a set limit for which you will be approved, and you can borrow based on the limit. Many members ask what a line of credit is when they need flexible access to funds for home improvements, debt consolidation, or unexpected expenses.
What Is a Line of Credit?
A line of credit at People Driven Credit Union is a revolving Home Equity Line of Credit (HELOC). You borrow only what you need up to your approved limit, repay it, and borrow again — just like a credit card but secured by your home.
How a HELOC Works.
Enjoy a 10-year draw period with interest-only payments on the amount you use. After the draw period, a 20-year repayment begins. Rates start as low as 6.50% APR and adjust with the Prime Rate. Minimum line is $5,000 with financing up to 100% loan-to-value.
Popular Uses for a this type of loan.
Members use their line of credit for home renovations, education costs, debt consolidation, emergencies, or major purchases. You pay interest only on what you borrow, which often saves money compared to a traditional loan.
Common Questions
What is a line of credit?
This type of loan allows you to borrow in increments, repay it and borrow again as long as the line remains open.
Get Help from Our Team
Call us at 844-700-7328 during business hours. Our team explains what a line of credit is and helps you apply. You can also visit any branch in Livonia, Southfield, Warren, Ypsilanti, or Romeo.
5 Helpful Hints
- Understand you only pay interest on the amount you actually use.
- Apply online at our HELOC page for fast pre-approval.
- Keep your home equity strong to qualify for the best rates.
- Consider a line of credit instead of a lump-sum loan when you need flexibility.
- Contact us at 248-263-4100 to learn exactly what a line of credit can do for you.
People Driven Credit Union offers a line of credit that gives you real flexibility and peace of mind. You borrow what you need when you need it and repay on your schedule. Many members use their HELOC for home projects or emergencies and love the control it provides. Thank you for banking with us.
