Personal loans and personal lines of credit finance large expenses when cash reserves fall short.
A personal loan provides a lump sum repaid in fixed monthly installments over 2–7 years.
A personal line of credit offers revolving funds with draw and repayment periods, like credit cards.
Average personal loan APR is 9.58%, while PLOC rates range from 9.30% to 17.55%.
Loans have fixed rates; PLOC rates are variable, often influenced by prime rate changes.