Thursday, July 9
Word of the day
A new term every day, so your finance vocabulary grows without a textbook.
Credit
Line of Credit
A line of credit is a flexible loan that lets you borrow up to a set limit, repay, and borrow again, paying interest only on the amount you actually use.
With a ₱100,000 line of credit, you might draw ₱30,000 for an emergency, pay interest only on that ₱30,000, and still have ₱70,000 available.
Mini quiz: With a line of credit, interest is usually charged on: