What is the difference between a personal line of credit and a personal loan?
Answer:
A "loan" is a fixed amount of $$ that is delivered at the time the promise to pay is delivered to the lender. A "line of credit" an amount set aside in an account, in exchange for a promise to pay, that the borrower draws as he needs it. The advantage of the credit line is that the borrower doesn't have to pay interest on $$ until he needs it.
Couldn't have said it better than MLaw.
to add to mlaw you can also reuse the line of credit after you pay it back you also get a better interest rate on it usually
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