Received mail offer?   |   Log In

How You May Be Able to Qualify for a Personal Line of Credit

November 29, 2019 by Daniel Azzoli

A person signing a document

If you’re on a tight budget, you may know how carefully you might have to manage your money just to stay afloat. Unfortunately, even when you think you have a good handle on your finances, unexpected expenses may be lurking just around the corner. The best way to handle unplanned emergency expenses is to have an emergency fund ready. But these can take time to build, and you might run into a surprise expense that you can’t cover with just your savings. This is where a personal line of credit may come in handy.

In this article we’ll discuss how you may qualify for a personal line of credit, some benefits of personal loans, and how to use loans responsibly.

What Is a Personal Loan?

A personal loan is money you borrow from a financial institution that can be used for a number of different circumstances. Something like a small-dollar personal line of credit is often used to deal with unexpected emergency expenses when you don’t have the savings to cover them.

So, what is a line of credit? It’s a revolving credit product that lets you borrow money up to the available credit limit that you’ve qualified for. This means that you can withdraw as much or as little from the line of credit, so long as you have available credit. Typically, you will only be charged fees, interest or other applicable charges on the amount you withdraw, not the entire credit limit available to you. A line of credit can act as a financial safety net when you’re unprepared to handle surprise expenses.

How to Qualify for a Personal Line of Credit

While not every financial institution will have the exact same requirements for you to be approved for a line of credit, there’s a good chance you’ll see some overlap. To qualify for a line of credit with MoneyKey, you must:

  • Be of legal age to contract in your state
  • Be a US citizen or permanent resident
  • Be a resident in the state where our product is offered
  • Have an active bank account
  • Have a regular source of income
  • Have a valid contact number and an active email address

You may find that other lenders have similar line of credit minimum requirements when you’re looking to apply for a line of credit.

Benefits of a Personal Loan

There are a number of benefits of personal loans. For starters, the application and approval for a personal loan can be relatively quick when compared to loans like mortgages or home equity lines of credit. If you’re approved, the money may be in your account in a matter of just a few business days.

a person raising their right hand

Again, loans like personal lines of credit are generally best served to help you through unexpected emergency expenses, like if you have to take an unexpected trip to the emergency room, or your car gets a flat tire and you need a quick replacement so you can make it to work.

Cautions for People Wondering How to Qualify for a Personal Line of Credit

While there are some pros to personal loans and lines of credit, they don’t come without a few potential cons. One thing to consider is that if you’re unable to make your payments on time, you could potentially damage your credit. You may also run into some trouble if you have problems with overspending. If you have easily accessible credit available to you, you may be tempted to spend it on unnecessary expenses. You should always keep in mind that this isn’t free money, and the more you spend, the more interest can quickly accumulate.

Make sure that when you’re shopping around for online loans or a personal line of credit, you look around to find the best rates possible and always go over the terms and conditions of the loan carefully before you apply.

Learn More About Line of Credit Requirements

A personal line of credit may be a good fit for you, but you’ll never know unless you do the proper research. Explore the resources MoneyKey has created to learn more about lines of credit and other emergency financial solutions, and get the most out of the borrowing process!

We’ve helped over 400,000+ customers.Let us help you!

Not all applications are approved; duration of approval process may vary. Credit limits/loan amounts are subject to further verification criteria. If you are a returning customer, loan amounts may vary.

*If approved, any requested funds may typically be deposited into your bank account the same business day; timing of funding may vary by product and state. The date and time funds are made available to you by your bank are subject to your bank's policies. For specific funding cut-off times, click here.

**You may request a draw from your Line of Credit at any time, so long as you have available credit and your account is in good standing. In the State of South Carolina, you can withdraw the total credit available to you all at once, or in smaller amounts over time as you need it, with a required minimum draw of $610.

As you move through your credit journey, your account may become eligible for reduced charges and/or increased credit limits/loan amounts based on good payment history over time. You will receive notices, as applicable, regarding your individual circumstances and eligibility.

Depending on your state of residence, applications submitted on this website may be originated by one of several lenders, including: CC Flow, a division of Capital Community Bank (CCBank), a Utah Chartered bank, located in Provo, Utah, Member FDIC. The CC Flow Line of Credit is provided by CC Flow. Additionally, CC Flow maintains critical control over loan origination, underwriting approvals, and regulatory and compliance oversight management. MoneyKey is an authorized servicer of CC Flow. This means the CC Flow Line of Credit is available through MoneyKey and you will maintain your CC Flow Line of Credit account through MoneyKey.

Product availability varies by state. To see loan products offered in your state of residence, please visit our Rates and Terms page.

MoneyKey – TX, Inc. is licensed as a Credit Access Business (CAB), License No. 16641-62815, by the Office of the Consumer Credit Commissioner and registered as a Credit Services Organization (CSO), Registration No. 20110150, by the State of Texas. All loans for which MoneyKey acts as a CSO/CAB are funded by an unaffiliated third-party lender and serviced by MoneyKey. In the State of California, MoneyKey – CA, Inc. is licensed by the Department of Financial Protection and Innovation pursuant to California Deferred Deposit Transaction Law License No.1004516.

Reviews and any ratings referenced are based on Trustpilot reviews. Images are for illustrative purposes only. Reviews reflect individuals’ opinions and may not be illustrative of all individual experiences with MoneyKey.