• You can use the money as needed, to do renovations
• Pay off credit cards that have higher interest rates
• There is no set amount that must be reimbursed, and no penalties

• You could go through the funds quickly if you are not vigilant. Monitor your spending and keep bad habits in check.
• The interest rate on a line of credit fluctuates according to market conditions. They are not easy to predict.
• If interest rates continue to go up a lot, you could find yourself unable to pay back your line of credit.

To get a line of credit, you have to submit a request to a financial institution. They evaluate:

• Your liquidity (the probability you can pay back the money that you borrow)
• Your revenue: your household income should be between $35 000 and $50 000
• How much credit you have with other institutions
• Your credit score: your background regarding bill payments and repayment of loans
• These factors will help a financial institution determine the interest rate and limit of your line of credit

Don't forget you can negotiate the interest rate and conditions regarding the line of credit.

• How good will I be at managing my spending and staying on budget with my line of credit?
• Is there a fee associated with the line of credit and how much is it?
• Should I make a purchase right now using a credit line, or should I save the money?
• How much can I pay back every month?
• Should I insure my line of credit in case of death or disability?