| open-ended credit line
| imposed
| borrowing limit
|
| needs
| home-equity line of credit
| outstanding debts
|
| asset
| dispersed
| available
|
| credit score
| options
| bank account
|
When you apply for an _____________ with a banking institution, you typically have three ____________available: credit cards, equity lines and personal checking lines. Credit cards are one of the more common open-ended credit sources, but equity lines and personal checking lines of credit might offer more money depending on your __________. Equity lines are typically backed by an ____________ owned by you, like a home or piece of property. Personal checking credit lines are open-ended lines offered by banks that use your ___________ as collateral. When you apply for a close-ended credit line, you apply for a loan. Loans are dispersed in full immediately, unlike open-ended credit lines.
Both open-ended and close-ended credit lines have borrowing limits ____________ by the bank for their protection and your own. The _______________ depends on your credit rating and if the credit line is secured or unsecured. For example, a _____________________ is a secured credit line offered to you with your home as collateral. If your home is valuable, your credit line will be large; if your home is not valuable, your credit line will be smaller.
Open-ended and close-ended credit lines have different effects on your credit score. Open-ended credit lines, for example, increase the amount of ____________ credit to you, which increases your_____________. Close-ended credit lines are ____________ immediately, and are seen as _____________ by credit rating agencies, which might lower your credit score. Making payments on both types of credit, however, has the potential to increase your credit rating.
