What is a Personal Line of Credit?
A Personal Line of Credit is a loan that you access from time to time. You write special checks or request a transfer to your checking account by phone or online.
Like a credit card account, you have a credit limit, receive a monthly bill, make at least a minimum payment, pay interest based on your outstanding balance, and possibly pay a fee each time you use the account.
Personal Lines of Credit are unsecured, unlike Home Equity Lines Of Credit (HELOCs) , which are backed by a mortgage on your home. Personal Lines of Credit are offered by banks and credit unions and usually require that you also have a checking account with the same institution.