What is the difference between a line of credit and a credit card?
A line of credit allows you to borrow money for any reason. You can use it if you need extra cash, or pay off your current debts. Credit cards are used mostly for purchases. They offer rewards programs and lower rates when compared with loans. But they have a few drawbacks.
A line of credit allows you to borrow money from your bank for any purpose. You can use it to pay for items like home improvements, furniture, or even your car. But unlike a loan that has fixed interest payments over the term, a line of credit is paid back in full at the end of the term. This means that you don’t have to worry about monthly payments as long as you make them on time.