What is the difference between a line of credit and a personal loan

What is the difference between a line of credit and a personal loan Introduction: The World of Credit Hello everyone! Welcome to our video on the difference between a line of credit and a personal loan. When it comes to borrowing money, these two options often come into play. But what sets them apart? Let's dive in! Defining the Basics: Line of Credit A line of credit is a flexible form of borrowing. Think of it as a pool of funds you can dip into whenever needed. It's like having a financial safety net. You're approved for a maximum amount, but you only pay interest on what you use. It's great for ongoing expenses or when you're unsure of the exact amount you'll need. Exploring Personal Loans: The Lump Sum Approach