Which is Better – A Personal Loan or New Line of Credit?
No matter the time of year, holidays or not, the need for additional money may arise. While there are several ways to obtain extra money, two of the most common ways include opening a new line of credit and taking out a personal loan from a bank. The question posed in this article is – between the two, which is more advantageous? Read on to find out! Before understanding which is better between a personal loan and new line of credit, it is important to define the two terms as they are closely related. A line of credit is where you have an agreement with a company to borrow a specific amount of unsecured credit for a specific period of time. This amount of money is available for use at any time as long terms of the agreement are met. Personal loans are money given by the bank on credit. There is no collateral given. The amount that you get is based on your credit rating and they are usually paid off in a short period of time (two to three years). Personal loans can be used for anything
