line of credit vs credit cards in YNAB

isnt a line of credit or a credit card the same thing? im trying to wrap my head around why you need to seperate them in the system? does the system treat them diffrently ? 

In my case i have access to invoice funding for my invoices that come in late , my invoice funding company gives me money up front for a fee ( 10%) . I then can repay the money back with 3 months , they take out weekly payments. 

but whats the diffrence between that and a credit card? 
Its all debt with fees and interest and minimum payments and we have to eradicate it !!!

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  • Hi broke ceo !

    That's a great question! Both account types (CC and LOC) function exactly the same in YNAB, so which type you choose to set it up as is up to you! It's the same idea as the checking/savings/cash account types, while they are technically different types, they all behave the same way in the app.😊  

    Reply Like 1
      • broke ceo
      • one day i will warrant a buffet
      • broke_ceo
      • 6 mths ago
      • Reported - view

      Jannelle  thank you 

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      • Daniel
      • horazius
      • 4 mths ago
      • Reported - view

      Jannelle I am not sure if this is true, especially concerning overspending in a category:

      1) Line of Credit: Overspending turns red => decreases amount to be budgeted of next month

      2) Credit Card: Overspending turns orange => increases debt on Credit Card

      I stumbled on this concerning the Giro-Accounts (an account where you have a line of credit) in Germany which I first created as Line of Credit Accounts. But because of the different behaviour I will rather make it a credit card account, although it is none.

      But maybe this is a bug? I would expect line of credit accounts to behave like the credit Card concerning overspending.

      Reply Like
    • Hi Daniel !

      I just checked this (created a Line of Credit and purposefully overspent), and I got different results. The Line of Credit overspending showed in yellow, increasing the debt on the Line of Credit. Did you have any other spending in the category you tested? Cash overspending takes priority, so if there's cash and credit overspending in the same category, the Available column will show in red - once enough is budgeted to cover the cash overspending, it'll show in yellow for the remaining credit overspending.

      Do you have any cash overspending in that category?

      Reply Like
      • Daniel
      • horazius
      • 4 mths ago
      • 1
      • Reported - view

      Faness Thanks for your quick answer! I guess you are right. It is like you said that i had mixed spendings. Best regards!

      Reply Like 1
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