Despite major unease among literally billions of consumers worldwide due to markets across the globe becoming more unstable, it has peaked the need people to find solace within their own homes for a financial infusion of money!Instead of mere cash advances that don’t yield much cash, many are utilizing the home equity line of credit option that can load up your account with thousands more. However, are these lines of credit less in terms of interest rates attached than your everyday credit cards or should we continue to borrow against this plastic?While this certainly depends on your credit rating and how much the credit card issuer is charging in interest rates, on average is what we are concerned with in this examination. As for home equity loan rates, most whether considered a fixed second mortgage type, or a credit line, are significantly less than using credit from an average credit card.Although, the only caveat to this fact is: if the credit card company has your rate down so low that it would match or literally beat what the standard discount rate lenders are allowed and this is usually occurring only if some sort of negotiation with them has taken place.The fast are hard facts about both credits are that normally the equity line is usually between 4-8% while standardized credit card rates run anywhere between 15-30% as a default. Of course these percentages would reflect the current lending rates and economic conditions but they are true and indicative of the differences between the two types.As for the best value, it would reflect your current rate of interest via your credit card but for the most part, the home equity option is probably a much better value overall!If you think you have enough equity in your current dwelling to indicate a loan against it, utilize the credit line option as it’s inexpensive and flexible.
