Revolving lines of credit generally do not involve the use of credit cards and often offer borrowers more credit at lower interest rates than creditcards. Borrowers use checks to pay their bills, purchase goods and services, or even to take cash advances. Banks, brokerage houses, and otherfinancial institutions offer open account credit to qualified borrowers.Revolving Credit LinesOverdraft protection is linked to yourestablishedoverdraft provision can signal that you'reYou receive funds from an unsecured personal line of creditcreditbein case you overdraw your account. It draws on a line of credit that is usually. You should use your overdraft provision. Frequent use of yourgoing through the formality of setting up a new loan. It draws on a line of credit that can. Remember, even though acquiring the funds is as simple as writing a check, the funds still represent a loan.Payments are usually structured to be dueHome equity lines of credit enable you to acquire cash based on the. The majority of lenders extend home equity linesIf you have anof credit based on either 100% of your equity or some portion, usually 75% to 80% of your home's market value, whichever isexisting mortgage on your home, most lenders willyour maximum line of credit by the outstanding balance of that mortgage.behaveToday your home is worth $200,000. The balance you owe on your mortgage is $85,000. Your equity is $to sell your home in order to gain access to your equity. According to your lending institution's policy, the maximum home equity line of credit is 80%of your home's worth. Eighty percent of your home's worth is $. Your lending institution follows the practice of most lenders asThis line of credit is considered a loan that willdescribed in the previous paragraph. Your line of credit will be $What do the three major forms of open (non-credit card) credit have in common? Check all that apply.00They have potential tax advantages.They are helpful in emergencies.They require collateral.They provide funds that are easy to spend unwisely.Using overdraft protection without getting into trouble with it requiresfunds used for the protection are. As such, therefees are really worth your overdrafts, for many of which you may have forgotten the original use.Using an unsecured line of credit can help youonce approved, obtaining cash advances isSecuring this type of line ofKnowing how revolving lines of credit work will help you to make informed decisions about using them. Answer the following questions about thevarious options available through revolving credit lines.An advantage of using a home equity line of credit isdanger is that youYouThe debt created canRemember that thea fee attached to using the funds. Ask yourself if the accumulatinghave the cash flow necessary to make the payments. YouRemember that a big danger is thatlose your house.. A big

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Overdraft protection is linked to your checking account in case you overdraw your account. It draws…