How Does Line of Credit Differ From Personal Loan

In this video, find out the difference between a personal loan and a personal line of credit. These two financing methods can plan your future financial steps.

A line of credit is always available to you when you need it.

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However, apply for it before the anticipated event. To get one, you will need to apply for it, and the approval is based on your credit score, financial history, and more. A line of credit is used for unknown future purposes with an unclear final amount like medical bills, and it also has a variable interest rate on the money you spend.
On the other hand, a personal loan is also known as an unsecured loan or installment loan. To get a loan, you must apply for it, and when approved, it has a fixed payment period, fixed amount, and a fixed interest rate. It is generally used for those expenses whose total amount can be quantified, like the price of a car. Once you receive this loan, you are expected to pay it back with an interest rate. If you want to know the best borrowing option for you, always contact a financial advisor or banker, like Regions Bank.

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