Last Updated on Apr 1, 2020 by James W


A cash shortage is stressful, but not necessarily surprising. When you consider your income against the cost of living, it’s almost expected in today’s economy. An unexpected bill or repair is enough to threaten your carefully crafted budget. Luckily there are small dollar loans to help you bridge the gap between a spontaneous bill’s due date and your next paycheck.

Sometimes, however, it’s not just one bill that jeopardizes your budget but a series of unavoidable charges or repairs in a single month. At this point in time, the average short term loan isn’t a practical solution. When you know you’ll have to pay for multiple, smaller purchases over a longer period of time, a personal line of credit is your best option.

How They Work

A personal line of credit from one of the many state licensed online direct lenders in the country, such as MoneyKey, offers a slightly larger sum of money than their short term loan counterparts. This is what makes them a useful financial strategy when faced with several concurrent hardships. Typically, lines of credit loans through MoneyKey amount to $1,000 — a limit that provides a critical back-up should you find yourself short when paying off multiple unexpected bills one after another.

They also have a different repayment schedule than other fixed financial products. The typical line from an online direct lender follows a similar repayment plan as the credit cards in your wallet. At its first issue, there is no immediate due date set. It’s only when you start making withdrawals from your approved limit that you’ll have to arrange payments. Even then, you aren’t required to pay back the loaned amount in full. Only minimum payments, based off of the amount that you’ve used (and not the total), are necessary. These payments will take into consideration the principle as well as interest.

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Why Online Direct Lenders

Lines of credit are a fairly popular financial product due to their convenience and efficacy; however not every source of this product is suitable for every situation. When you’re stuck with a bad credit score, going down the traditional avenues for these loans is an impractical option. It will only waste your time. Banks and other financial institutions require lengthy reviews of your financial history, and they’re usually started – if not completed – during an in-person interview. This review will include an appraisal of your score, and they’ll reject any application from an individual with too low of a rating.

Online direct lenders, on the other hand, don’t follow the same policies. Their evaluation process requires basic contact and financial information and not a credit rating. It’s also done primarily over the Internet, as these lenders have a quick and easy to navigate online application form available. When they need to verify the information you’ve provided, they’ll contact you over the phone, so you don’t have to go out of your day to attend a meeting.

When you’re busy working to earn enough money to cover your cash shortfalls, anything that saves you time and effort is a huge help. As a convenient source for financial assistance, lines of credit are exactly what you need the next time you have multiple surprise – yet unavoidable – bills to cover.


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