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Personal loan vs. personal line of credit: What’s the difference?

Bankrate·Kellye Guinan·about 1 month ago
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Key takeaways Personal loans are best for one-time, fixed expenses, while personal lines of credit are best for ongoing financing needs or purchases that require flexibility. Both options offer lower average interest rates than credit cards for borrowers with good credit. Repayment terms depend on how much you borrow and the lender you choose to work with. Personal loans and personal lines of credit (PLOCs) are both meant to cover big expenses or large purchases. The primary difference between these products lies in how you receive your funds. Borrowing a personal loan means receiving a lump sum, while a personal line of credit functions similarly to a credit card. Both personal loans and personal lines of credit can be a good way to borrow money. The best one for you depends on your financial habits — and what you intend to do with the money. Personal loans vs.…

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