According to CPA Ren Carlton, “A good step to help establish a personal line of credit is to open a gas station credit card. If you are new to credit, you might want to acquire a credit card, use it for your daily expenses and pay the entire balance monthly before the due date. To maximize your chances, you’ll want to remove any errors from your credit reports, pay down existing loans and control new spending. Lenders will check your credit scores and read your credit reports. Your credit standing can help or hurt your chances of securing a line of credit. Interest on personal credit lines is not tax-deductible, but the interest on your first $100,000 of home equity debt often is. Interest rates on credit lines are usually higher than the rates on home equity lines of credit, or HELOCs. A personal line of credit gives you quick access to emergency money and can provide you with overdraft protection for your checking account. The lender establishes a credit limit, but only charges interest on your borrowed amount. You can use and reuse it without filling out a new application. A personal line of credit is a revolving account.
