Regions Bank Credit Line Overview
When it comes to banking solutions, there has never been a better time to be a customer. From a broad perspective, it may appear that most financial
institutions can provide any consumer with some type of credit solution. However, hiding in the back corner behind the obvious rate shopping and customer
service smile, are the product details that make all the difference. Regions Bank, a financial pillar in the southeast, has those details down to a science, especially when it comes to their line of credit products.
Regions Bank Credit Line Pros
Regions’ credit line provides a convenient, flexible way to borrow. Some of the best features of this credit solution are:
Accessibility - Regions has a great online banking service that makes all accounts easily accessible. Their line of credit is no exception. Money is accessible after a few clicks, making unexpected purchases possible.
Convenience - Another plus for the Regions Credit Line is the time that it saves. Without a line of credit, customers must visit a branch each time they want to borrow money for a significant purchase. However, a credit line provides the customer with the convenience of making a purchase without waiting for approval.
Flexibility - Borrowing an accurate amount of money for things like home renovations or a vacation is next to impossible. Renovation estimates can be off by thousands of dollars, and a long vacation can be full of variables. This uncertainty can put the borrower in a jam when it comes to deciding on a loan amount. Regions’ solution is to provide customers with a Home Equity Line of Credit, alleviating this problem. If secured by home equity, a Regions HELOC can range from $10k-$500k ($250k higher than the maximum amount possible for a Home Equity Loan). The amount borrowed can encompass the entire project, or partial amounts can be borrowed at various times. Withdrawing smaller amounts prevents the customer from paying interest on the unused portion of the credit line.
Rates - One of the best features of a line of credit, especially when secured by home equity, is the annual percentage rate. Regions provides non-discounted APRs between 4.75% and 11.125% on home equity lines of credit- significantly less than credit card rates. Interest can be tax deductible, and if a customer decides that they are finished using their credit line, they can convert payments to a fixed interest rate.
Other Perks - Regions credit line has several other positive aspects. For one, Regions HELOC does not require a minimum draw. This comes in handy when customers are not looking to use a large amount. Further, unlike the dedicated funds received from a loan, borrowers can use credit line funds for any purchases they deem necessary; this is extremely convenient when it comes to unexpected purchases. Lastly, borrowers can tie their credit line to their checking account. That way, if a high-priced emergency arises, consumers feel confident in fund availability.
Regions Bank Credit Line Cons
This particular credit line, like most banking products, is not entirely bells and whistles. The significance of these drawbacks is dependent upon specific customers and situations, but knowing the drawbacks is a vital part of the decision-making process. A few detriments to note are
Fees - Regions charges credit line customers a $50 upkeep fee each year and a $29 fee for exceeding the available amount of funds.
Access - Although the Regions HELOC funds are accessible via Visa Platinum Card, this does not hold true for an unsecured line of credit. Nonetheless, secured and unsecured credit line funds transferred to the line holder’s checking account are accessible via debit card.
Branches - One major benefit of a credit line is the availability of cash in hand. Funds are immediately available after transfer, so there is no wait time for withdrawal. However, for customers needing more than the standard $800 cash available at the ATM, it will be difficult to find a branch open after 5 p.m. on weekdays. There are also very few branches open on Saturdays, so some planning may be necessary.
Credit Line Customer
Uncovering the details of a product is a crucial part of the decision-making process, though that alone does not reveal whether or not a product is the proper fit for the customer. A credit line is handy when making large purchases, such as paying various college expenses, making car or home repairs, or in situations where purchase prices may vary (vacations or bartering to purchase a car). A credit card is a comparable product to consider. Most of the time, Regions’ credit lines have better rates than Regions’ credit cards, and cash advances are usually easier to obtain from a credit line. The flexibility of a Regions’ credit line is hard to beat, but, when in question, looking at other credit products is necessary.
Comparisons
Similar lines of credit are not hard to come by. Wells Fargo and Chase have similar credit products with flexible spending capabilities, and, once again,
the differences are in the details. Some notable details are:
Wells Fargo HELOC
- Wells Fargo’s line carries a $75 annual charge after the first year, as compared to Regions $50 annual charge.
- A Wells Fargo secured line amount can max out at 70% of the home’s loan-to-value ratio. Regions will loan up to 80% of the LTV.
Chase
- APR rates currently range between 4.25% and 6.64%.
- There is potential for a .25%-.50% rate discount for having a Chase checking account.
Regions Bank Credit Line Review Summary
Weighing out the various advantages and disadvantages of banking products is, perhaps, the most crucial part of being a smart shopper. Regions credit line, like most banking products, does have its downfalls. However, other products cannot easily attain the convenience and flexibility provided by this credit solution.
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