Best Personal Lines of Credit

A personal line of credit combines a personal loan’s spending power with a credit card’s flexibility. It can be a smart way to pay for various expenses, including home improvements, weddings, or other major expenses.

Our picks for the best personal lines of credit were selected following an evaluation of interest rates, borrowing limits, repayment terms, and borrower reviews from lenders.

Reviews of the 4 best personal lines of credit

Here are our reviews of the best personal lines of credit, explaining how each excels at meeting specific borrower needs.

• Best for credit card consolidation: Tally
• Best for no annual fees: U.S. Bank
• Best for a large line of credit: Truist
• Best for added benefits: Elastic

Tally

Best for Credit Card Consolidation

4.6 _/5

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Why Tally is one of the best

Tally is a credit card manager designed to help you consolidate debts and save money on interest. When you get a personal line of credit with Tally, the money is used to pay off existing credit card balances. Payments automatically go to the cards with the highest APRs first.

According to Tally’s website, the average user saves $4,300 in interest over seven years. These are unsecured personal lines of credit, meaning no collateral is required. You can also learn how much funding you might qualify for without a hard credit check. 

• Immediately pays off your credit card debt
• Refill your line as you pay off some of your balance
• Check your eligibility without affecting your credit

• Limited details on eligibility requirements
• Charges an undisclosed annual fee

Rates (APR)	5.59% – 16.99%
Loan amounts	Depends on your outstanding credit card debt
Repayment terms	No set term length

Eligibility requirements

• Soft credit check: Yes
• Minimum credit score: 580
• Minimum income: Not disclosed
• States: Not disclosed
• Other requirements: You must be at least 18 years old with a credit card

U.S. Bank

Best for No Annual Fee

4.4 _/5

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Why U.S. Bank is one of the best

U.S. Bank offers personal loans and unsecured personal lines of credit. You can get up to $25,000, and personal line of credit rates are competitive. If you’re getting a personal line of credit for emergencies, you can link it to your U.S. Bank checking account for easy transfers. You can also use it as backup overdraft protection for your checking account.

The lack of an annual fee is a standout benefit offered by U.S. Bank, as most other lines of credit come with an annual maintenance fee. Once approved, you can manage your credit line at ATMs, online, through the U.S. Bank mobile app, at a branch, or using personal access checks. 

• Offers multiple lines of credit for different uses
• Doesn’t charge an annual fee
• Check your eligibility without affecting your credit

• Must have a U.S. Bank checking account to be eligible

Rates (APR)	12.50% – 22.50%
Loan amounts	Up to $25,000
Repayment terms	1 – 7 years

Eligibility requirements

• Soft credit check: Yes
• Minimum credit score: 680
• Minimum income: Not disclosed
• States: All 50 states and D.C.
• Other requirements: Must be a U.S. Bank checking account client

Truist

Best for Large Lines of Credit

4.0 _/5

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Why Truist is one of the best

Truist offers several personal lines of credit to meet different needs. The amount you can borrow depends on the credit line that you choose. Here’s how funding limits compare.

• Unsecured personal lines of credit: Borrow up to $50,000
• Secured personal lines of credit: Credit lines start at $25,000
• Ready Now lines of credit: Borrow $300 to $7,500
• Physician lines of credit: Borrow up to $100,000

Truist is one of the best personal lines of credit options if you need to get a larger credit line and you’re looking for competitive rates. There are no application or cash advance fees. 

If you have a Truist bank account, you can apply for a personal line of credit by phone. Otherwise, you’ll need to visit a Truist branch to apply. The bank does not specify a minimum credit score required for approval.

• Choose between secured or unsecured lines of credit
• No application or cash advance fees
• Same-day funding available in select cases
• Check your eligibility without affecting your credit

• Can’t check your eligibility with a soft credit check

Rates (APR)	Starting at 13.69%
Loan amounts	$5,000 – $50,000
Repayment terms	Not disclosed

Eligibility requirements

• Soft credit check: No
• Minimum credit score: Not disclosed
• Minimum income: Not disclosed
• States: All 50 states and D.C.

Elastic

Best for Added Benefits

3.9 _/5

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Why Elastic is one of the best

Elastic offers access to a smaller personal line of credit. You can borrow $500 to $4,500 to cover emergencies or day-to-day costs, with funding available as soon as the next day following approval.

You might consider Elastic if you need funds fast and have a bank account. You’ll need a checking account to receive proceeds from your line of credit.  

Rather than charging interest, Elastic charges a cash advance fee and a carried balance fee to access your line of credit. The cash advance fee ranges from 5% to 10%, and the carried balance fee is $5 to $350, depending on how often you make payments.

• Funds available as soon as the next day
• Access to financial tools like Credit Score Plus and Financial U
• Check your eligibility without affecting your credit

• The fee structure makes it difficult to predict costs
• Not available in all 50 states

Rates (APR)	None, payment based on fees
Loan amounts	$500 – $4,500
Repayment terms	Not disclosed

Eligibility requirements

• Soft credit check: Yes
• Minimum credit score: Not disclosed
• Minimum income: Not disclosed
• States: Not disclosed

How personal lines of credit work

A personal line of credit is a revolving credit line that allows you to borrow money up to the limit your lender establishes. Your available credit can increase or decrease as you make withdrawals and payments. 

In that sense, personal lines of credit are similar to credit cards. You can reuse your credit for its “draw” period, which can last a few months or several years. After the draw period ends, your account enters repayment, and you can no longer use it for transactions. You’ll pay interest but only on the amount of your credit line you use.

A personal line of credit is best when you need access to a flexible amount of cash over an extended period. A personal loan won’t allow for long-term flexibility, and credit cards often carry lower credit limits, higher interest rates, and fees for a cash advance.

Types of personal lines of credit

The two types of personal lines of credit are unsecured and secured.

Unsecured lines of credit

An unsecured line of credit doesn’t require collateral. A lender can approve you for one based on your credit score and other financial information. This type of financing is helpful if you have emergency expenses or want to consolidate higher-interest debt.

Benefits of an unsecured line of credit include the ability to use the line of credit for many purposes, no need to put up your personal assets as collateral, and the ability to get your funds right away.

A major drawback to an unsecured line of credit is that because you don’t put up collateral, interest rates might be higher than a secured line of credit.

Secured lines of credit

A secured line of credit means you put up an asset as collateral. This can be cash, savings, investments, and even home equity. This type of financing is good for home renovations and making large purchases, but you can use it for any expense.

The benefit of a secured line of credit is that because you use collateral to secure financing, you typically get lower interest rates than you would with an unsecured line of credit. Depending on the asset’s value, you can also secure larger lines of credit.

However, the drawback is that if you can’t make your payments on time, the lender could seize your assets.

Common eligibility requirements for personal lines of credit

Like many financing options, personal line of credit eligibility and rates are based on several factors, including your credit history, credit score, income, and debt-to-income ratio (DTI). A high credit score and a low DTI ratio will generally yield lower rates.

Credit score

Some lenders may accept borrowers with a score of 580 or better, and others expect you to have a score of 680 or higher. The higher your credit score, the more likely you will qualify for more competitive rates and terms.

For perspective, according to FICO, below is a comparison of how “good” and “bad” credit scores compare.

Credit score range	Rating
<580	Poor
580 – 669	Fair
670 – 739	Good
740 – 799	Very good
800+	Exceptional

Employment history

Lenders like to see a stable employment history, such as being at your current job for at least one to two years.

Income

Lenders will verify your income by asking you to submit pay stubs, tax returns, and even bank statements. While lenders don’t specify a minimum income required to take out a personal line of credit, the bank will evaluate your debt-to-income ratio to see whether you can make payments.

Debt-to-income ratio (DTI)

DTI is the total amount of your monthly debt payments divided by your gross monthly income. This number is a percentage, and lenders prefer lower DTI percentages, such as 35% or less.

Even if you have good credit, getting a larger credit line may be difficult if you have a lower income or higher DT. A high DTI shows that your debt levels are too high to add another debt obligation.

Final considerations

Reviewing your credit scores and financial situation before you apply can give you a better idea of what kind of loan terms you might be eligible for. Assessing your credit, income, and debt is also helpful for weeding out lenders that may not be a good fit for you.

Remember that if you have significant collateral, the value of those assets might help you get approved for a secured line of credit, even if you don’t meet other qualifications on this list. 

How to choose the best personal line of credit

Here are several of the most important factors to consider when choosing a personal line of credit.

• Credit limit: Some lenders offer higher credit limits than others, so figure out how much you want to borrow first so you can find a lender that matches your needs.
• Interest rates: The annual percentage rate (APR) is the total cost of your loan, including interest charges and fees. Fixed rates remain the same throughout your term, but variable rates fluctuate based on market conditions. 
• Credit score: Your credit score will affect your rates, so it’s important to compare rates across different lenders.
• Fees: Be aware of any fees that might apply. These can include annual fees, origination fees, and charges for late payments or overdrafts. A line of credit that seems attractive at first glance may become less after considering the associated costs.
• Repayment terms: You’ll need to make at least minimum payments on your personal line of credit. Some lenders might offer interest-only payments at first that transition into higher payments after a set period. Find out when you start making principal payments so the higher amounts don’t catch you by surprise.
• Term lengths: Typically, lenders offer personal lines of credit for terms lasting several years. Terms vary by lender, so choose one that meets your needs.
• Penalties: Missed payment penalties can affect the overall cost of your loan, so find out what your lender charges should you miss a payment. Also, ask whether your lender charges early repayment penalties.

Tips for comparing lenders

In addition to comparing the factors above, here are our tips to ensure you get the best lender for your needs.

• Consider the lender’s reputation. Look for lenders who offer clear, concise product information and have positive customer reviews. 
• Review the flexibility of their terms. The line of credit terms should be flexible enough to meet your needs, including draw periods, repayment options, and the ease of accessing funds.
• Get multiple quotes. Getting quotes from three to five lenders ensures you can find one with the best rates and overall terms.
• Read the fine print. Before signing on the dotted line, read your line of credit agreement carefully. If you have questions about something, ask your lender.
• Consider the total cost. Some lenders charge higher fees than others. When comparing, look at more than just the interest rate a lender offers. Also, compare fees and calculate the total cost of the loan over the full term.

By considering these factors, you can identify the best personal line of credit. Remember, the best choice is one that offers a low-cost way to borrow while providing the flexibility to meet your needs.

Common uses for a personal line of credit

A personal line of credit is often a good choice when you need quick access to a large amount of cash. Because a line of credit is flexible, it’s often best for expenses over an extended period or when uncertain how much money you’ll need.

Deciding whether a personal line of credit is the right move can depend on several factors, including:

• Your planned use of the money
• How much it will cost you to borrow
• What you need the funds for

Here are examples of when you might rely on a line of credit versus other borrowing options. 

Use	What it covers
Home improvements	Contractors, supplies, or other expenses
Debt consolidation	Pay off high-interest debts and streamline monthly payments
Medical expenses	Costs insurance doesn’t cover
Wedding expenses	Caterers, photographers, wedding staff, and decorations
Day-to-day bills	Fill the gaps between paychecks
Unexpected expenses	Car repairs, veterinarian bills, or other unplanned expenses

Pros and cons of a personal line of credit

Personal lines of credit can offer advantages and disadvantages to borrowers. Comparing the pros and cons can help you to decide if a personal line of credit makes sense. 

Pros

• Funding is often quick, with credit line access available in just a few days.

• Rates can be less than you’d pay with a credit card.

• Flexible access means you can borrow as needed and only pay interest on what you use.

• Depending on the lender, you may get access to a large credit line.

• Most personal lines of credit can cover a wide range of expenses.

Cons

• Often have higher interest rates than good-credit personal loans and even some fair-credit loans.

• As with credit cards, a high balance can lower your credit score.

• Lenders may charge annual fees and other fees to withdraw cash from your credit line.

Personal lines of credit can also have variable rates that increase if the market rate goes up. This means your monthly payment may change. A personal loan is better if you prefer a predictable, fixed payment and rate.

Alternatives to a personal line of credit to consider

A personal line of credit is one of many ways to borrow. You might also consider a personal loan, HELOC, or a credit card to cover planned or unplanned expenses. They can all put cash in your hands, but they work differently.

Product	Best for
Personal line of credit	A flexible credit line with lower rates than a credit card
Personal loan	Fixed rates and stable monthly payments
HELOC	Homeowners who want access to a large amount of money
Credit card	Smaller purchases you can pay off during the billing cycle

Regarding how to choose between a personal line of credit and another borrowing alternative, it can be helpful to look at them side by side. Here’s a quick breakdown of how the options outlined here measure up. 

Personal line of credit vs. personal loan

A personal line of credit is a revolving credit line you can borrow against as needed. With a personal loan, you get a lump sum you pay back with interest. 

Personal loans tend to have fixed interest rates, which could make them more affordable than a variable-rate personal line of credit. If the rate on your credit line adjusts upward, it becomes more expensive. 

You might choose a personal loan rather than a personal line of credit if you want the security of a fixed rate and predictable payments or know how much you need to borrow. Most personal loans don’t charge annual fees, but some lenders may assess an upfront origination fee. 

Read More

Line of Credit vs. Personal Loan: Which Is Better?

Personal line of credit vs. HELOC

A HELOC works like a personal line of credit; you get access to a revolving credit line. The biggest difference is that your home secures a HELOC. 

You borrow against your home’s equity when you get a HELOC. You’ll have a draw period, which may last five to 10 years, then a repayment period, which may extend 10 to 20 years. You’ll repay your HELOC with interest during that time, and the rate may be fixed or variable. 

You might choose a HELOC over a personal line of credit if you use it for home improvements or repairs. If the home improvement meets IRS guidelines for substantially improving your home and you itemize deductions rather than using the standard deduction, you can deduct the interest you pay on your credit line.

However, you might stick with a personal line of credit if you lack sufficient equity or would rather not use your home as collateral. 

Personal line of credit vs. credit card

Credit cards can be convenient for making purchases, and some of the best credit cards include extra perks, such as rewards or travel benefits. A credit card may offer a higher or lower credit limit than a personal line of credit.

The rates you pay will likely differ. Credit card rates can easily land in the double-digit range unless you apply for a card with a low introductory rate. For example, you might get a 0% APR credit card if you want to transfer a balance from a card with a higher rate.

A personal line of credit can allow you to withdraw cash. You could do the same with a credit card, but you’ll typically pay more interest and cash advance fees. When weighing the two, it’s helpful to consider how you’d use a line of credit versus a credit card and what it might cost you.

FAQ

Can you use a personal line of credit for any purpose?

Yes, you can use a personal line of credit for any purpose, including consolidating high-interest debt, renovating your home, taking a vacation, improving cash flow, or making a large purchase.

Are there any fees for personal lines of credit?

Yes, many lenders charge fees when you take out a personal line of credit, but these vary by lender. They could include origination fees, late fees, cash advance fees, and annual fees. These can add to the overall cost of your loan, so it’s important to consider them when you’re comparing lenders.

 What happens if I miss a payment on a personal line of credit?

Most lenders will charge you a late fee if you miss a payment on your personal line of credit. Your lender might also raise your interest rate. Your lender will also report it to the credit bureau if you’re more than 30 days late. 

Your payment history makes up 35% of your credit score, which means your credit score will drop if you’re late.

How we selected the best personal lines of credit

Since 2017, LendEDU has evaluated personal loan companies to help readers find the best personal loans. Our latest analysis reviewed 1,029 data points from 49 lenders and financial institutions, with 21 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Higher star ratings are ultimately awarded to companies that create an excellent borrower experience with affordable financing solutions. This includes offering online eligibility checks, cost transparency, little to no fees, and other unique benefits to support borrowers in repayment.

Recap of the best personal lines of credit