Get CREDIT LINE ACCOUNT AND PERSONAL LOAN APPLICATION - Focuscu

Personal loans and a personal line of credit serve a similar purpose (allowing you to borrow cash), but they function differently. A personal loan provides you with a single lump sum of money with a fixed monthly payment while a line of credit provides ongoing access to funds.

Lenders often have higher credit score requirements for lines of credit compared to personal loans. For example, borrowers should aim to have a minimum credit score of 670 when applying for a line of credit. However, there are personal loans available that only require scores of at least 580.

Opening a personal LOC usually requires a credit history of no defaults, a credit score of 670 or higher, and reliable income.

The Bottom Line Though lenders will each have their own qualification requirements when it comes to credit scores, you could get approved for a line of credit if you have a score of 660. However, your chances of approval (and getting better interest rates) increase if your score is closer to 713 and above.

A line of credit (LOC) is a preset borrowing limit that can be tapped into at any time. The borrower can take money out as needed until the limit is reached. As money is repaid, it can be borrowed again in the case of an open line of credit.

Many give preference to borrowers with good or excellent credit scores (690 and above), but some lenders accept borrowers with bad credit (a score below 630). The typical minimum credit score to qualify for a personal loan is 560 to 660, ing to lenders surveyed by NerdWallet.

Variable rates mean unpredictable costs: Since the interest rate can change on a variable loan, it's not possible to calculate your long-term borrowing costs from the get-go. May be tough to qualify: It can be challenging to get approved for a personal line of credit if you have weak credit or a limited credit history.

To land one, you'll need to present a credit score in the upper-good range — 700 or more — accompanied by a history of being punctual about paying debts. Similar to a personal loan or a credit card, an unsecured personal line of credit gets bank approval based on an applicant's ability to repay the debt.