13 Jul 2022

What are the types of credit facilities?

Mortgage Borrowing Limits

There are many different types of credit facilities to consider when looking for a facility. A credit facility, in general, is a company or organisation that offers borrowed amounts of money on a line of credit. This line of credit, though, is usually set at a high-interest rate, well above 8%. The interest rate, though, changes with time, as well as the company is offering the credit facility. Credit cards are revolving lines of credits since they do not close. There is no term or set limit that you must pay by; instead, it is best to keep spending low as more interest accumulates daily.

The most common forms of credit facilities are pre-approved revolving credits with lines of credits, general reward credit cards, store cards, bank cards, etc. These lines of credit are easy to obtain. However, there are fees to consider. When applying for a facility, always read the fine print. This fine print will define exactly how much each fee is, including the annual facility credit fee. This fee depends and varies each year as the line of credit increases.

Credit Facilities Conclusion

To consider these types of facilities in the best ways, don’t forget to speak with a representative. Mortgage House lenders, for example, are experts and specialists with years of training. They can offer advice and professional knowledge on the best loans and competitive interest rates on the market now. You won’t have to worry about fees either, as they can state the fees directly.

Fast track your home loan
Apply Online Book a Call Back
133 144

Why Choose Mortgage House?

Award Winning