A Line of Credit Helps Your Cover the Cost of Repairs

credit

For most people, the summer is a season to be greeted with open arms. It’s hot, sunny, and a time when a lot of Americans get to book their holidays. But for every sun-filled week, there are others that aren’t so enjoyable. Severe weather systems will move through the United States, leaving behind destruction in their wake. Plenty of Americans will assume their home insurance policies will cover these disasters, but that’s not always the case. Incomplete and lacklustre policies won’t cover all of the damage, leaving many families wondering how they’ll pay for the remaining repairs. Covering these damages on your own can be costly – but not impossible, as long as you have a line of credit.

A line of credit is a safety net when Mother Nature decides to throw a tantrum. Whether it’s the cleanup of a flooded basement or the repairs on a broken windshield thanks to a fallen tree branch, this financial product will have you covered. It’s typically an amount of $1,000 – which is just enough to cover the remaining cost that your policy and savings leave over. Perhaps its biggest advantageis that you don’t need to repay all of it back in one sum. You need only to pay a minimum balance which comprises a portion of the principal as well as any added interest as applied by your lender.

How much interest you accrue will depend on your lender – and your credit rating. Many Americans, for whom bad credit is a fact of life, assume they can’t get this sort of financial assistance at all. Or if they do, it comes with unmanageable interest rates. Not all lending companies will require a flawless rating, and count the lenders at  among them. That’s because online direct lenders like MoneyKey provide lines of credit to individuals, even if they have poor credit ratings. Unlike other lending companies and financial institutions, which require in-depth reviews of your financial history, their main concern is if you can prove you have a steady income. That, along with proof of a bank account, email address, as well as some basic contact information, is all they need in order to review your application.

The average insurance policy will cover damages caused by fire, theft, and excessive wind, but those damages caused by predictable weather events (like flooding in a storm-prone neighbourhood) won’t be covered by your standard policy. As a result, you’ll have to pay for some, if not all, of the repairs yourself. This added financial responsibility puts pressure on the average American family unless they can get some outside help.

Having a line of credit is a great way to pay for these damages. In fact, a recent study by the University of Chicago has found that Americans with access to these kinds of financial products have a better chance of rebounding from disasters. So the next time you think your low credit score will stop you from getting assistance in your time of need, consider an online lender like MoneyKey. You may be approved for a line faster than you think.

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