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What is the difference between a personal loan and personal line of credit?
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A loan is a lump sum amount you borrow from a financial institution. To repay the loan, you make fixed payments over a predetermined period.
A line of credit is a revolving source of funds, up to an approved amount. You access the funds only when you need them. Any amount you repay is accessible to you again without reapplying. Unlike a personal loan, a line of credit lets you write cheques and make ATM withdrawals. Also, you only have to pay interest on the funds you use.
- How to apply for a Line of Credit or how to increase limit on Line of Credit?
- When do I pay back my loan?
- What’s the difference between my online password, telephone password and ATM PIN?
- What's the difference between a short-term and long-term mortgage?
- What's a co-borrower on a loan or a line of credit?
- What information do I provide when applying for a loan or line of credit?
- Is there a limit on how much I can pay back on my line of credit?
- What are the costs for getting a line of credit?
- How is interest calculated on my line of credit?
- What is a Secured Line of Credit?
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