Online loans: What is a Line of Credit and how is it used?

Online Loans Ferratum Credit Line

Whether you have a full-time job or are self-employed, each work situation is unique. Nowadays we are beginning to see how the number of people who work from home, who start startups or work part-time to carry the lifestyle they most want increases. Like work schedules and lifestyle, people’s income and cash flows are also variable and unique in each case.

Imagine, for example, Natalia, who works as a freelance translator because it gives her the flexibility she so desires. Although Natalia has clients who require her services on a regular basis, her workload varies from week to week: some work more hours and others less. Also, although Natalia has regular customers, after billing their services, some pay per month and others every two weeks. However, regardless of when they pay you, Natalia obviously has expenses and bills that arrive on the same date every month.


Flexible Credit

If you are like Natalia and flexibility is very important to you, then the Ferratum Line of Credit may be what you need. While in traditional loans you ask for a specific amount and then return it, the online lender with your monthly payments offers you the ultimate flexibility.


Money available whenever you need it

If like Natalia, you know that you will need to borrow money several times a year, instead of requesting several loans, the Ferratum Credit Line offers you a pre-approved credit of up to € 1000 throughout the year, without having I ask for it again every time. It’s there for when you need it.

Natalia’s employment situation means that, while waiting for her clients to pay her, she will have cash problems from time to time. With the Ferratum Line of Credit, Natalia has a maximum credit limit and withdraws only what she needs. In this way, you always have cash and can pay your bills on time.


Only interest is applied to the withdrawn amount

With the Ferratum Line of Credit, Natalia can withdraw money, return it, withdraw it again and return it again as many times as she wants. And better yet, Natalia is only charged interest for the amount she has withdrawn and not for the maximum credit limit she has access to. Therefore, as you return the money, the interest goes down as well.


Make refunds according to the money you have

Since the Ferratum Line of Credit is what is known as revolving credit, there is no fixed number of installments to be paid. Natalia can choose how much she wants to return each time, as long as it is an amount equal to or greater than the minimum monthly payment of € 75. What one month has entered a lot? Well, it returns more. What other month do you see that falls short? Well, return the minimum.

So simple and flexible.