What is a Line of Credit?


A revolving Line of Credit (LOC) is an agreement between the lender and the borrower. After applying for a revolving line of credit, the borrower prequalifies for an amount of money (say $1,000) that they can borrow against when they need it.


Our simple interest line of credit means that when they do borrow against the amount, the borrower agrees to repay the amount borrowed, with interest, in regular payments like a credit card. They can also borrow more at any time against the total, just not more than the total available from their LOC.


If this sounds enticing, a revolving line of credit from Minute Loan Center could be the solution for you. With a Minute Loan Center LOC, you can prequalify for credit and access cash advances whenever you need them. Get peace of mind with convenient, reliable funding from Minute Loan Center.

How do I prequalify?

The Minute Loan Center application process is easy and protected by bank-level security protocols. You don’t need a strong credit score. Simply register for a VIP member account, and we’ll let you know how much you prequalify for. We maintain physical, electronic, and procedural safeguards in compliance with federal banking regulations to guard your nonpublic personal information.

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Frequently Asked Questions

Why should I apply for a revolving line of credit?

A line of credit can provide more flexibility than other types of loans. Like a credit card, you have access to a certain amount of credit, against which you can borrow. Unlike a credit card, the interest is simple interest compared to compound interest. This means you only pay interest on the amount you borrowed, and never on any interest accrued.

This combination of features provides flexibility – you only borrow the amount you need, and control, because each payment pays down your principal, reducing the amount used. Many Americans find an LOC to be a very useful credit tool.

Are revolving Lines of Credit secured or unsecured?

While some LOCs, such as ones based on the value of your home are secured, many LOCs, such as the Minute Loan Center simple interest line of credit are unsecured, which means you do not have to put anything up for collateral in case you do not pay your loan back. You are still responsible for your loan, but no personal property is tied to it.

What kind of interest is charged on a Line of Credit?

Most LOCs use Simple Interest. Beware of any LOC that uses Compound Interest.

Can I have more than one loan against my revolving line of credit at the same time?

Yes, you can borrow against the full amount of your available credit. So, if you have a total line of credit of $2,000, and borrowed $500, you can borrow up to $1,500 against your LOC before you pay back the $500. Applying for a revolving line of credit gives you the flexibility to borrow and repay your way.