Whenever you apply for a loan, you have to go through a whole application process each and every time you need a little extra cash. But with an online line of credit, the money you need can be available anytime. After you’ve applied and been approved, you can withdraw however much you need up to your max amount of credit.
Traditional loans require fixed payment amounts that—once paid back—close out the loan entirely. A line of credit is different; you can borrow money in increments and pay it back, borrowing again and again (and paying back again and again) as long as the line of credit stays open.