Talk:Line of credit

انا انسحب مني فلوس لوحده — Preceding unsigned comment added by 41.33.79.100 (talk) 11:45, 27 August 2022 (UTC)

What about the “lenders’ right to create money out of thin air like the Federal Reserve member banks do?
Not so long ago credit cards that offer users a revolving charge account did not exist. In February 2016 revolving credit card debt was $940.6 billion. That’s $0.9406 trillion. http://useconomy.about.com/od/demand/a/Average-Consumer-Debt-Statistics.htm This wiki article should discuss the birth to death process of credit card loans. This should be done with the clarity and specificity of the document, ‘’Modern Money Mechanics’’, which details how the “loan” money comes into existence, what it does to the money supply, and shows that the principal is “extinguished” upon remittance of payment of principal plus interest, while the interest is counted as income to the “lender” and remains in the money supply.

This is important because ordinary folks are led to believe that when they are granted a “loan” from an institution regulated by the Federal Reserve it is like a loan from a friend or family member. In that kind of transaction money is not created, and repaid principal is not “extinguished”. Instead, the lender grants the borrower a sum of money that already exists in the money supply, whereas in a bank “loan” the sum advanced to the borrower is new money created by the “lender” out of thin air.

If credit card debt is like a bank loan, then it increases the money supply when created. This effect was a prerogative of Federal Reserve member banks ONLY previously, and control of the nation's money supply was vested solely in the Federal Reserve through discount window interest changes.

Do credit card “lenders” lend or do they “lend” (using the distinction explained above)? It’s important.

Lobdillj (talk) 14:45, 3 May 2016 (UTC)

Personal Lines of Credit (PLOC)
This is a specific type of line of credit with specific rules on how it can be used. It is valuable to include this as it is becoming a more popular financial product and is distinct from general / business lines of credit, Home Equity Line of Credit (HELOC) and other types of personal loans. In June 2021 Wells Fargo announced that they are disolving their PLOC product. This resulted in an increase in the number of "what is a personal line of credit" type articles appearing in Google and other search engines. Reference: Kafkaj (talk) 17:08, 26 July 2021 (UTC) KafkaJ