Personal Loan versus Line of Credit
With a personal line of credit, however, you do not need to pay interest until you draw on your available credit line; plus, you would be charged interest only on the outstanding balance which you carry. This works similarly to a credit card.
Having a credit line means having the necessary access to funds which can be used and repaid over and over again in a particular time frame. It can be useful when doing big projects such as one that pertains to home remodeling, where expected expenses can shift. In addition, it can make you free of the hassles which come with finding another source of cash, while expenses come up in the future.
You might find it tough to qualify for a PLOC if you do not have the perfect credit score because approval often requires that an applicant’s credit be in a good state. Keep in mind that lower credit scores could result in higher rates of interest after approval.