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Do you know what a line of credit is?


What if you need some extra cash, but don’t know how much you’ll use? What if you just want some money for an emergency? What if you have a big project you are working on, but it might take some time and you don’t want to pay interest on a loan for a long period? Then a line of credit might be for you! 

A line of credit is a loan, but not in the traditional sense you may be thinking of. Normally, when you take out a loan you get a lump sum disbursed to you on the day you close, and you have X amount of time to pay it back with interest. With a line of credit, you have an amount you are approved for but on the day of closing, the entire amount of the loan doesn’t have to be disbursed to you at once. Instead, the loan amount is there waiting for you to use it. You can take money from it, otherwise known as a draw, at any time for the amount you need. Some institutions require a minimum draw amount so be sure to ask. The best part is you only pay interest on the amount you drew off the loan which saves you money because you are only using what you need.  

There are two different kinds of credit lines WestStar offers: a personal line of credit or a home equity line of credit. A personal line of credit doesn’t require any collateral but is based on creditworthiness. Most members choose to use it as overdraft protection, so if you overdraw on your account, it automatically pulls the funds to cover it from your line of credit. You can use it even if you need extra funds for something else like a vacation or wedding. A home equity line of credit is determined by the equity you have in your home and uses your home as collateral. This is perfect for home renovations.  

If you think a line of credit is right for you, feel free to apply online at or give us a call for more information.

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