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A line of credit can be a very valuable part of your financial planning. Having a line of credit open and ready to use is beneficial in case of an emergency. One nice benefit is that you use it at your discretion and there is no obligation. You only use it if you need it.

Multiple credit lines gives you option and allows you to choose which fits your circumstances depending on what situations you are faced with.

At least one credit card is basically an essential in today’s world. People rarely carry cash anymore because paying with credit cards has become the way to go. If you find yourself in an emergency or unexpected situation and don’t have enough cash, a credit card can be a life savor.

In this light, having a credit card to use for those small emergencies when you may not have the cash can be a good thing to do.

For more unexpected expenses that are larger a line of credit may be helpful. Drawing money out off a line of credit can be as simple as writing a check to your bank for cash, or writing a check to yourself. It can also be used to catch up and get back on track if you find it difficult to meet your debt obligations.

If you have problems with your line of credit, it can be a good plan to have a backup just in case. This is where having a credit card and a line of credit or a home equity line of credit can prove to be very helpful.

It is not about necessarily using your lines of credit on a regular basis but rather having your ducks in a row financially.

Having the ability to choose between different lines of credit and what the minimum monthly payment is along with how much interest you may want to pay gives you flexibility most people don’t have.