Hey all. So I'm looking into purchasing something that will probably take me a while to pay off. I can use a credit card, but the store also offers a "line of credit" through Bank of America that would give me the same interest rate. I'm not sure exactly what that is, but I'm guessing its the same as a credit card except its just a one time use loan.

Anyway, question is, I know things like car loans are seen differently and look better than credit card debt on your credit report. Would one of these "lines of credit" look any better or worse than a credit card?

I appreciate any advice.

I'm honestly not sure if credit via a card, loan, or store will really matter all that much - my impression is that it's not the source of credit as much as the amount and whether you're in the black with it that counts the most.

However, something I'd ask is whether there are any loan rates that would beat the credit card and store? Simply because these traditionally tend to have higher interest rates in the long term.

Hope that helps, and welcome to The Finance Forums, nick12.

I would look at the rates too. The lower the better when it comes to that.

I would get a line of credit. It is much quicker to pay it off than a credit card.

If it was me I would take the line of credit from the store. I really do not like to use credit cards that much. But it is just what you feel is best for you.

A line of credit would be reported no different than a credit card because these are both considered revolving debts. Debts such as student or auto loans are considered to be installment debts.

Installment debts are more favored by the credit bureaus because the debt is designed to be paid off within a specified amount of time. Whereas a revolving account has no pay-off term, and can be charged up over and over again.

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Bad credit is Bad, but credit cards are Good.

There is no difference between a line of credit and a credit card. Both calculate interest against your "average daily balance" and both show on your credit report equally. Absolutely go with the one with the better reputation of consistent rates and obviously the better rate.

Rates are the key. Line of credit is more convenient, but the credit cards give you more flexibility to shop in other places.

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Small Business Cash Advance / Wall Street Journal Online

Rates and terms are key. Card,bank, line of credit all the same isn't it? What really matters is will you pay back 10 times more in interest and so on. Pick wisely and come out ahead.

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Easy To Get Credit Cards
www.easytogetcreditcards.ws

It is better to avoid a credit card as much as possible due to other associated reasons.
I think you should go with the one which provides lesser rate of interest.

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The Marketing Guy.