Best Personal Line of Credit Offers for February 2023
- Lines of credit from $500 - $5,000
- Only pay charges on what you use
- Transparent process
- Fast funding, as soon as the same business day*
How to Get the Best Credit Line
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What is a personal line of credit?
A personal line of credit (PLOC) is a borrowing product that lets you access funds up to a certain limit, which you can then use for whatever you need. Like a credit card, a PLOC is revolving credit, so you can borrow against your limit and only pay interest on the amount you use.
PLOCs are becoming increasingly popular because they offer many advantages over other types of loans. You can use a personal line of credit for anything you want - from big expenses like a home renovation to smaller costs like groceries or gas. Unlike a regular credit card, there's no need to reapply every time you want to borrow money.
It’s perfect for financial emergencies or large purchases that require you to use credit, and there are many options available with different terms, interest rates, and benefits - like rewards points.
If you want to learn more about how personal lines of credit work and which one might be best for your needs, keep reading as we compare the best personal line of credit in the US.
A personal line of credit vs a personal loan
A personal line of credit (PLOC) and a personal loan are both forms of credit, but they are quite different.
A personal loan is a lump sum of money that you borrow from a bank or other lender. You agree to repay the loan over a fixed period of time, usually with monthly payments.
A personal line of credit, on the other hand, is like having a credit card but without the interest rate. You can borrow money as needed and only pay interest on the amount you borrow. You also have the flexibility to repay the loan over time or all at once.
Which one is right for you? That depends on your needs and financial situation. A personal loan might be a better option if you need a large sum of money and want to lock in a set monthly payment.
A PLOC might be a better choice if you need more flexibility or want to avoid interest payments.
How can I use a personal line of credit?
A personal line of credit can be used for a variety of purposes, such as:
- Consolidating your debt: If you have multiple high-interest credit cards, you can use a personal line of credit to consolidate your debt into one monthly instalment with a lower interest rate. This can help you save money and get out of debt quicker.
- Funding a large purchase: A personal line of credit can be a great option for funding a large purchase, such as a new car or home renovation. This way, you don't have to use your credit card and risk going over your limit or accruing too much interest.
- Covering an emergency expense: If you suddenly find yourself in need of cash, you can use your personal line of credit to cover the cost. This can help you avoid going into debt and ruining your credit score.