What is a Personal Line of Credit? How it works

 What is a Personal Line of Credit? How it works


Personal lines of credit can be used for almost anything, but failing to repay them on schedule can lead to big financial problems.

Home improvement projects are the most common use for personal LOC, but there are other situations where the interest rate and flexible repayment options make lines of credit worth considering.

How Does a Personal Line of Credit Work?

A personal line of credit is a ready source of funds usually used for meeting immediate, urgent, or long-drawn personal or business expenses. You can withdraw money into your bank account as and when you require it. Additionally, you only pay interest for the line you use, and there’s no obligation to use the entire line.

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