What is a Personal Line of Credit?

Like a credit card account, you have a credit limit, receive a monthly bill, make at least a minimum payment, pay interest based on your outstanding balance, and possibly pay a fee each time you use the account.

Personal Lines of Credit are unsecured, unlike Home Equity Lines Of Credit (HELOCs) , which are backed by a mortgage on your home. Personal Lines of Credit are offered by banks and credit unions and usually require that you also have a checking account with the same institution.