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.
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.