Line of credit loan

line of credit loan

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? A personal line of credit lets you borrow money as you need it. It doesn’t require a specific purchase purpose, and you only pay interest on the funds you borrow. U.S. Bank Personal Line of Credit Wanting to pay off a credit card or update your home with a little more financial flexibility? A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed. A line of credit, like a credit card, is an unsecured revolving credit line, with a credit-line limit and usually a variable interest rate. It is suited for ongoing expenses, such as a home repair. A line of credit works differently from a loan. When a borrower is approved for a line of credit, the bank or financial institution advances them a credit limit which the person can use over and. We only accept online or phone applications for a Personal Loan or Line of Credit from customers who have an existing account with us. Please visit a Wells Fargo branch to speak to a personal banker about your credit options. SunTrust personal lines of credit are here to help you with large purchases or unexpected expenses. Apply online in less than 15 minutes. 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. Line of Credit vs. Installment Loan Typically, an installment loan comes with a fixed term. Whereas lines of credit are usually open-ended. 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.