Christian Revolving Credit Line
A Christian revolving credit line is a type of loan which does not set a fixed number of payments in order to repay the money which has been borrowed. This type of account is unlike an installment plan, with its specified number of payments. Instead, a certain amount of credit is granted, and the borrower may use as much of the funds as needed. Credit cards are a familiar example of this type of account. The borrower may repay the entire amount at once or spread the repayment out over as many payments as necessary. However, most of these loans will require a minimum level of repayment each month.
The amount of money available through a revolving credit line will fluctuate somewhat as the borrower repays and borrows further funds. For example, if the borrower uses $1,000 of a $3,000 credit limit, at that point he has only $2,000 left in available funds. Then, if $500 is repaid, the available amount will jump to $2,500. If the total amount of funds used is repaid, the limit will return to $3,000 and the borrower may continue to access the designated funds as needed.
With consumer cards, usually there is no charge for keeping the account open. Of course, interest will be charged according to the terms specified in the account agreement, but these charges only apply to the amount of money which has been utilized. (Corporate clients may have to pay a fee even on the funds which remain unused and ready for future purchases.) Be sure to check the method of computing finance charges, and any fees for balance transfers or late payments. Some cards have a grace period, where interest is not charged, while others charge interest from the date of purchase. Most states have specific regulations regarding revolving credit line accounts, and the charges which are allowed for these services.
Business is another major area where a revolving credit line can come in handy. Again, there is no fixed repayment schedule, but in this case the borrower may have to pay a commitment fee when applying for this type of account. The commitment fee is not the same as interest fees. Commitment fees are charged by the lender in order to guarantee that the funds will be available, either for the present or for future use. Businesses typically use a revolving credit line account for maintaining liquidity. Businesses have seasonal ups and downs, and these accounts can help smooth the way at times when an organization might not have the amount of cash flow to be able to purchase additional inventory or pay ongoing business costs such as salaries, rent or utilities. However, this source of funding is best used as a temporary measure. It is wise business practice to use the money to purchase a larger quantity of non-perishable inventory if these items are discounted in bulk by the vendors. However, if the situation is such that one is constantly having to draw upon these funds in order to remain solvent, revising a business plan may be in order. Just as in the use of a personal account, it is all too easy for a business owner to get himself into a situation which could endanger the very existence of the company.
The application and requirements for repayment on a revolving credit line may be simpler than those for other loans or financing options. Owners may borrow the funds which are needed in order to deal with various short-term fluctuations. If more long-term needs are being considered, such as the purchase of a facility, a better rate would probably be obtained by using a more conventional loan. Rates for a revolving account may vary, so shop around before making a commitment. There may also be differences in the way lenders regulate the procedures for the use of the money. Some require collateral and periodic review of the account. Others may be less demanding.
Like regular cards, a revolving credit line must be carefully monitored. Some lenders provide a personal financial counselor and additional materials such as articles or newsletters to keep their clients informed. On-line and in-person consultations about financial matters can usually be arranged. "Hear counsel, and receive instruction, that thou mayest be wise in thy latter end.", says the writer of Proverbs 19:20. The information and suggestions which these firms offer can be a valuable asset. Even if a business owner decides to take a different path, he can benefit from knowing the types of options which are available.
The likelihood of being considered eligible for a business revolving credit line may be improved by establishing a business credit score. To begin this process, apply for a business credit card and a vendor line of credit from organizations which will report your transaction history to the Small Business Financial Exchange (SBFE). In this way, personal transactions are separated from business dealings. Those companies which provide a revolving account will appreciate seeing a history of loans being repaid in a timely manner, and may be willing to give a businessman whose history is verified a larger amount of credit. Although such a privilege must be carefully maintained, this will allow a businessman to focus upon growing his business instead of worrying about financial liquidity. With this matter settled, he can know that additional funding is definitely available, and that he is prepared to take immediate advantage of opportunities to improve the business.
Christian Online Escrow ServicesOnline escrow services can take the jitters out of paying for an expensive item bought online through one of the many Internet auction services. Falling in love with a piece of jewelry pictured on an auction site and realizing it is priced far below market value can be an exciting moment for a bargain shopper. But the seller is in Arizona and the buyer is in Maine. Neither party has met the other and now the idea of sending a check for one thousand dollars without some sort of security assurance can seem very risky. The payment could arrive from Maine, check cashed and the diamond ring never leave Arizona leaving the buyer quite ring less. On the other hand, the check could bounce or get thrown into the dead letter pool and if the ring has already been shipped, too bad, the seller is out of luck.
Enter the online escrow services plan that can now save the day with its middleman service between the two parties. The online escrow services have sprouted up by the thousands in response to the millions of transactions taking place on the many auction websites in America and around the world. Jittery buyers and sellers can rest easier, knowing that no one is going to get ripped off in an Internet buy or swap. And if a person believes that, he will probably buy the moon dirt offered for sale by the gas station down the road. The sad truth is that many of these services are actually just big scams and too many people have lost a lot of money trusting websites that didn't deserve the trust.
Take the story of the guy who sees a motorcycle on an online auction site for fifteen hundred dollars below what everyone else is asking. The seller agrees to the price when called and recommends an escrow service he has used "for years." The buyer looks up the online escrow services website and it looks good plus the seller has a good rating with the auction website and so the deal is struck. The story is always the same. No motorcycle and the website disappears over night. More than ever before, we live in a world where there seems to be few people a person can trust. But Solomon once wrote these astounding words:" Trust in the Lord with all thine heart and lean not unto thine own understanding; in all thy ways acknowledge him and he shall direct thy paths." (Proverbs 3:5-6)
The sad truth is that there aren't very many good online escrow services out there. In fact, out of the many hundreds that exist, only a handful are endorsed by the major online auction websites. Part of the problem is that victims of these crimes cannot get the recipient's name unless the police get involved. By the time that all happens, and since the crime is often taken place across the country between two distant parties, there is often little resolution to the matter. In many cases, these phony escrow sites originate overseas, many of them in former eastern bloc countries. The few legitimate Net escrow services do offer a genuine service to online auction sellers and buyers. The escrow service will never pay the seller until the buyer is completely happy but Internet payment services just pass the money along so unless the seller or buyer can afford to lose the money, don't expect an online pay service to be interested in anything other than being the money conduit.
The major auction sites offer buyer protection programs for transactions up to one thousand dollars in value. For an extra fee, buyers and sellers can be protected from that amount of fraud. But for things such as car sales, expensive jewelry and other high ticket items, buyers on their own unless one of the very few licensed online escrow services. And buyers that use major wire transfer services are not covered in case of fraud, though the wire companies often get many complaints from customers about being scammed. The wire companies really are powerless and must follow privacy laws that often protect the criminal.
On the Internet, perhaps more than anywhere else, "buyers beware" is not only a mantra but a cardinal rule. With so few online escrow services being licensed, there is plenty of reason why Christian consumers might be taken to the cleaners. If there is an impossible price, be aware. If the email address looks suspicious, be wary. If the seller wants to be contacted outside the auction site, be very leery. And if the seller says he is on vacation and cannot be contacted for a while, run Forrest, run!