Personal Loans

Personal loans are a type of loan that let you borrow a fixed amount of money that is distributed in a lump sum. With a personal loan your monthly payments will be the same each month because they offer fixed interest rates and a fixed repayment timeline.

Personal Lines of Credit

A Personal Line of Credit is an unsecured revolving credit line that allows you to borrow money against a preset limit, much like a credit card. Although your monthly payments may change due to the variable interest rates, you pay interest only on the amount you use.

Generally Personal Loans are used for one-time expenditures, like financing home projects, taking care of unexpected expenses, or to consolidate high-interest debt. Personal Loans are typically unsecured, which means they don’t require collateral like a home equity loan, and as a result are accessible to almost anyone.

Personal Lines of Credit are ideal when managing purchases with unclear overall costs, multiple purchases, ongoing use or to cover for life events with uncertain costs. With a Personal Line of Credit, you'll be prepared for uncertain borrowing needs, plus, you'll only pay interest on the funds you're using.

For both Personal Loans and Personal Lines of Credit, the amount you can borrow (your credit limit) is determined by need and credit qualifications such as your income and your credit score.

More info: Understanding, Managing, and Improving your Credit Score.