A line of credit is a pool of money a lender makes available to you that you can borrow from whenever you need it. Unlike a loan where you receive a lump sum all at once, a line of credit lets you draw money as you go, pay it back, and borrow again—similar to how a credit card works. You only pay interest on the money you actually use, not on the full amount available to you. Lines of credit come in different forms, from home equity lines to personal lines, and each works a bit differently depending on the lender and your situation.
The articles here explain how lines of credit function, what happens during the process process, how interest and payments work, and what to consider before opening one. You'll learn the differences between types of lines of credit, how they compare to other borrowing options, and what questions to ask a lender before committing.