What are the major differences in terms or payments, interest rates, etc.
2006-09-17 13:26:40 · 4 answers · asked by raaj22 1 in Business & Finance ➔ Credit
A "loan" is a fixed amount of $$ that is delivered at the time the promise to pay is delivered to the lender. A "line of credit" an amount set aside in an account, in exchange for a promise to pay, that the borrower draws as he needs it. The advantage of the credit line is that the borrower doesn't have to pay interest on $$ until he needs it.
2006-09-17 13:32:11 · answer #1 · answered by Anonymous · 3⤊ 0⤋
1
2016-09-28 05:29:55 · answer #2 · answered by ? 3 · 0⤊ 0⤋
to add to mlaw you can also reuse the line of credit after you pay it back you also get a better interest rate on it usually
2006-09-17 13:37:16 · answer #3 · answered by betty boop 5 · 0⤊ 0⤋
Couldn't have said it better than MLaw.
2006-09-17 13:34:18 · answer #4 · answered by canela 5 · 0⤊ 0⤋