What is a line of credit?
Whenever people need money, seeking a line of credit is usually the last option they can opt for. A line of credit is basically the preset amount of money that a bank agrees to lend an individual. The person can draw from the line of credit whenever he needs it up to the maximum limit set and further, he’ll have to pay interest on the amount he has borrowed. So, the line of credit grants people access to money “on demand” and helps them with expenses such as unplanned car maintenance or a home project. The line of credit is offered by lenders like credit unions or banks and if the individual qualifies it, he can easily avail of the maximum amount for the set time period.
What is the difference between ACH & Wire Transfer?
The adoption of consumer electronic payments has elevated rapidly in recent times. Individuals and businesses no more prefer cash payments and are switching to non-cash payments, which seems to be a far better and secure approach. And out of the most popular and preferred electronic payment methods, Automated Clearing House (ACH) transfer and wire transfers continue to receive global adoption and usage for carrying out electronic payments by the majority of the people around the globe. Though both the payment methods are safe and efficient and facilitate the electronic transfer of funds, there are many notable differences that everyone must be aware of before making a choice between the two. So, let’s discover the major differences between ACH transfers and wire transfers.