There are plenty of general differences between loans and lines of credit. Standard loans are often given for bigger-ticket debts such as a house or car and are more likely to be secured against. A Line of Credit gives you the ability to do just that without having to fill out a new loan application each time you want to make a draw. With our line of credit loans, you only need to apply for a line of credit one time and after you obtain approval, you can withdraw funds up to your available credit. A line of credit is a pool of available money that you can borrow from as you need it, something like a credit card. You have the ability to spend the money after you've been approved, but you don't actually have to borrow it or pay interest until you do access the funds. How Do Lines of Credit Work? Important Information About These Products. Subject to credit approval, eligibility and credit qualifications. 1 Line maturity and access to available funds is determined by line amount and an annual credit review process. 2 Personal Credit Line rates will vary with the market based on the Prime Rate. The Prime Rate means the highest per annum Prime Rate of interest published by The Wall. Line of Credit vs. Installment Loan Typically, an installment loan comes with a fixed term. Whereas lines of credit are usually open-ended. With a personal loan or line of credit from U.S. Bank, you’ll get to enjoy easy access to your funds. Find the loan that’s perfect for you and apply online today. A line of credit is a revolving account that lets borrowers draw and spend money up to a certain limit, repay this money (usually with interest) and then spend it again. The most common example of this is a credit card, but other types of lines of credit, such as home equity lines of credit (HELOC) and business lines of credit, exist. A Personal Loan or Line of Credit will provide you access to the money you need to consolidate debt, make home improvements, pay for unexpected expenses and more. Whether you want a line of credit or a personal loan, PNC can help find the best option for you. A line of credit, like a credit card, is an unsecured “revolving” credit line with a limit and a variable interest rate. It’s best-suited for ongoing expenses, such as an unpredictable home repair. A line of credit is essentially a reusable loan. You can borrow up to a certain limit, make minimum payments, pay interest, pay off your balance, and borrow again. You can repeat this process as many times as you like as long as your line of credit is open and in good standing.