Personal Lines of Credit | Loans & Lines of Credit | Regions

A personal line of credit:

  • Variable interest rates
  • Can be secured (requiring collateral) or unsecured (requiring no collateral)
  • Begins accruing interest once you access the funds
  • Typically have higher interest rates than personal loans

With a personal line, you don’t need to know upfront how much money you want to borrow. A personal line of credit is more flexible. Once you’re approved for the funds, you can use some of the funds, pay down your balance and access your available credit line again and again. For instance, if you’re approved for a $20,000 unsecured line of credit, you could use $10k immediately to upgrade your screened in porch, and in a year, decide to use the other $10k to repaint the inside of your home. Unlike personal loans, personal lines of credit offer variable interest rates that can change, and you only start paying interest on a line of credit once you access any portion of the funds available to you.

While personal lines of credit typically have higher interest rates than personal loans, secured lines of credit tend to have lower interest rates than unsecured lines of credit.

Like personal loans, personal lines of credit can be either secured (collateral required) or unsecured (no collateral required).

Personal loan

  • Fixed interest rates
  • Fixed repayment terms
  • Can be secured (requiring collateral) or unsecured (requiring no collateral)
  • Accrues interest as soon as the loan is deposited
  • Typically offers lower interest rates than personal lines of credit

With a personal loan, you will need to know upfront how much money you want to borrow. When you apply for a personal loan, you receive a fixed amount of money and repay it at a fixed interest rate over a fixed period, often referred to as a “term”. Terms generally range from 12 – 60 months. Personal loans typically have a lower interest rate than personal lines of credit, and interest begins accruing at the time you accept the loan. Because a personal loan offers fixed interest rates, it’s commonly used to consolidate high-interest debt. You can use our debt repayment calculator to compare what repayment options may look like.

Personal loans can be either secured (collateral required) or unsecured (no collateral required). Because secured loans require collateral, they can have lower interest rates.

Want to learn more about personal loans versus personal lines of credit? Watch this short video.