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What is a Line of Credit?

what is a line of credit and how to use a personal line of credit

When you need a little extra cash, there are lots of ways to borrow money. Many people turn to a credit card to cover a financial emergency. Others may borrow from a friend or family member. When those options aren’t available to you, you may consider a personal line of credit.

A personal line of credit can help when you need to borrow a larger amount of money to pay off over a longer amount of time. A lender offers an approved limit, that you can use when and how you choose. You also make monthly payments rather than paying it all back at once.

When it comes to taking on any debt, you should know whether it’s the right fit for your situation. Read on to learn more about personal lines of credit, how they can be used, how to apply, and more.

What Can a Line of Credit Be Used For?


For the most part, how you use a line of credit is up to you. That’s one of the great things about this type of loan — you can use it to cover almost any expense, and you pay interest only on the amount you’ve taken, not the amount you are approved for.

This is where a personal line of credit differs from a personal loan: a loan gives you one total amount of money all at once. It accrues interest at a fixed rate, and you begin repaying a fixed amount each month.

With a personal line of credit, you only pay interest on the credit you use. If you don’t end up taking the entire amount, your repayment is only based on what and when you take it.

With this difference, a personal line of credit is often a good choice when you don’t know how much you will need or when you will need it. This includes things like home improvements, medical bills, car repairs, or other expenses that are subject to change. [KH5] [KH6] A personal loan may be better for one-time expenses that are clearly defined.

How to Get a Line of Credit

To apply for a personal line of credit, you will need to provide a current US-issued photo ID, a bank statement from within the last 30 days, an active checking account, and a current phone number and email address.  You will also need to provide proof of income. Since your credit history is only part of the deciding factor, even if you have less-than-perfect credit, you can still qualify.  We accept all credit types at LendNation.

One of the great things about applying for a loan through LendNation is we will tell you right away if you’re approved. We also take the stress out of the application by making sure the process is quick and easy.

Why should You Apply for a Personal Line of Credit with LendNation

We realize that sometimes your financial emergency calls for emergency funds. LendNation makes sure you know you have options available. Specifically with a personal line of credit.

  • We know you might need cash quickly. We get you the cash you need with a variety of solutions. We also offer options in-store and online, making it easy for you to get the cash you need the simplest way for you.
  • We understand you.  We understand that not everyone has the cash they need for whatever the reason. We also understand not everyone has perfect credit. Every cash need is unique and we’re here to work with you to get the money you need now.
  • We’re in it with you. We want to help give you the confidence and security to overcome your daily financial challenges.  Whatever the reason, we can help.

Look into a LendNation Loan First

If you’re looking for cash to cover an unexpected expense, a personal loan from LendNation may be the right choice for you. LendNation has a number of loan options that can provide funds even if you have low or no credit history. And with our quick approval and same-day funds, you can get what you need to have control over your financial future.

View LendNation’s loan options near you, or visit one of our store locations today.

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