Been freelancing for a while and things feel stable. Got a call from the bank offering a line of credit with good terms.
I’m not in a pinch for cash now, but we all know the freelance game can be shaky. Should I accept it just in case?
Has anyone been in this position? What did you decide?
Yes, but with conditions.
Understand the terms first:
Timing’s probably right since you’re stable. Banks care about your current income and situation, not future maybes.
Here’s what others missed - unused credit actually boosts your credit score. Shows you handle debt well without maxing out.
I’ve watched freelancers reject credit offers during good times, then get denied later when work dried up. Banks forget your past success fast when current numbers look bad.
Treat it like insurance. Hope you won’t need it, but you’ll be glad it’s there.
Grab it now. Banks are weird - they throw credit at you when you don’t need it, then vanish when you do.
I got one during a good streak a few years back. Didn’t touch it for almost two years. Then three clients all pushed their payments to next quarter at the same time. That line saved me from scrambling or taking garbage rush work just to pay bills.
Key thing: keep it separate from regular spending. I stuck the card in a drawer and forgot about it. Only used it when cash got tight.
Watch out for fees though. Some have annual charges that aren’t worth it if you won’t use the money.
Take it. Banks yank credit offers when your situation changes or the economy tanks. I’ve watched tons of contractors get rejected for credit lines exactly when they needed them most.
Just don’t touch it unless you absolutely have to. Think of it as emergency cash in the bank. Having it there can save your ass when clients pay late or big jobs get pushed back.
Worst case? You never use it and close it down the road.