What is the difference between a Personal Loan and a Personal Line of Credit? |
|
Answer:
If you need extra cash for home improvement or Yet, there are a few differences between the two loan types. Before applying for a loan, explore your options. Do you need a one-time payment, or would you like ongoing access to funds? Personal loans are either secured or unsecured. Getting approved for a secured loan is easier, and these involve lower rates. With a personal loan, borrowers receive a one-time payout from the lender. The interest rate is normally low, and the terms fixed. Thus, monthly payments stay the same throughout the life of the loan. A personal line of credit is slightly different. Rather than receive a one-time payout, borrowers gain access to a revolving line of credit. Money is withdrawn from the line of credit on an “as needed” basis, and monthly payments are based on the borrowed amount and interest rate, which can fluctuate. Once approved for a personal line of credit, borrowers can usually enjoy a 10-year draw period. Of course, the extended draw period is subject to a good payment history. Trackback(0)
Comments (1)
written by jc12 , November 19, 2008
Good one! But is is easy to get personal line of credit? Like here at http://www.financecreditline.com? Write comment
You must be logged in to post a comment. Join for free or Login.
|
TrackBack URI for this entry
Subscribe to this comment's feed
© QandAs.com, All rights reserved.
Save or Share