Personal finances might be the most important topic because it dictates everything about your life, from the food you eat to the clothes you wear and everything else you do. Having healthy money habits is the best way to ensure you maintain a quality of life that you’re happy with. That’s why, when it comes time to get a loan, you need to understand the different types so you can choose what will best suit your needs. In this video, you will learn about the difference between a personal line of credit loan and a personal loan. You will learn what they each are, how they’re different, and how they can each help you.
A line of credit loan is one that you can have waiting for you in the future. It also has a relatively long approval period. You will only pay interest on what you use, and the loan itself will mostly be determined by your credit. It can be beneficial if you know you’ll need a loan in the future but don’t know how much you need. The important thing is, a line of credit loan must be planned in advance. On the other hand, a personal loan provides you with a lump sum that accrues interest right away. It is better suited for unplanned needs.