What is a ‘Flexible Line of Credit’?

Information verified correct on October 24th, 2016
flexible credit card Find out how flexibility can extend to personal finance by learning more about flexible lines of credit.

Before we jump into the title term, we need to clear up some pre-requisites such as the concept of revolving credit first. When it comes to typical finance such as personal loans, you have a set amount of credit which when exhausted, you need to apply again for more credit. Although not referred to as ‘inflexible credit’, in theory, personal loans are. This article will clear up some definitions of these various and related terms.

What is Revolving Credit?

Revolving credit is finance that is constantly replenished as you pay it off. Your credit limit acts as your ‘loan amount’.

Comparison of Revolving vs Non-Revolving

Revolving: Credit Card

  • Your credit limit is $10,000. You spend $2000 every month for 5 months.
  • On the 5th month, you repay $8000. You now have $8000 of available credit to spend again (not taking into account minimum repayments/monthly fees).

Non-Revolving: Personal Loan:

  • Your loan amount is $10,000. You pay off $2000 every month for 5 months.
  • After 5 months, your loan term has come to an end. If you wish for more credit from a loan, you’ll need to apply again.

Are there any personal loans that feature ‘revolving credit’?

Yes. While not a true personal loan, Citibank’s ‘Personal Credit’ and ‘ReadyCredit’ act as hybrids of credit cards and personal loans. These hybrids are referred to as ‘flexible lines of credit’. Like a loan, you can choose the amount of credit landed to you (subject to approval).

  • These ‘flexible lines of credit’ offer the debt consolidation aspects and opportunities of personal loans. They are referred to as flexible as they have revolving credit as opposed to a fixed loan amount.
  • You will save significantly by keeping revolving credit accounts open as opposed to re-applying for loans. Loans often comes with hefty application fees, or a set % of the loan amount as a fee. These ‘flexible lines of credit’ and any credit card in general comes with no application fee whatsoever.

What are some advantages of these ‘Flexible Lines of Credit’?

  • Citibank Personal Credit offers 14.5% p.a. on purchases. It has completely replaced Citibank Personal Loans due to its rising popularity for those in need of either the function ability of a credit card or a loan. Temporarily unavailable.
  • Citibank ‘ReadyCredit’ offers 19.99% p.a. on purchases, and 7.9% p.a. for 24 months on balance transfers. It also features no annual, transaction, ATM or withdrawal fees ever from any Citibank or Westpac ATM, making it an incredible emergency line of credit to keep laying around.
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Credit Cards Comparison

Rates last updated October 24th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $59 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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