Top 3 Reasons to Consider a Personal Line of Credit

July 24, 2025

By Sarah Sumner

The world of finance can be a complicated place to navigate.

Especially when you're strapped for cash or have a big project looming. You might be considering a Line of Credit but are not sure exactly how it works. Then you come across the term personal loan and are really confused! Don't worry - we're here to sort out the terms, give useful tips, and help you on your way to financial prowess.

What is a personal Line of Credit?

A personal Line of Credit, also known as a PLOC, is an account with a credit limit that you can continue to draw from over time up to that limit and pay back with interest.

• Unsecured Loan
• Approval amount
• Draw amount
• Draw period
• Repayment period

Top reasons to consider a personal Line of Credit

1. You have a large, variable expense

Renovations, weddings, or medical costs may be covered flexibly with a PLOC.

2. You have good credit

Lenders may require good credit history for approval. Expect a hard credit check during the application.

Personal Line of Credit vs personal loan

A personal loan is one lump sum disbursed upfront, paid off in installments. A PLOC offers flexibility for ongoing expenses.

Weigh your options

Taking on a new loan comes with responsibilities but could help you reach your goals. Do your research and make the right decision for you.