What is the difference between a loan and a line of credit? Secured vs. Unsecured?
A line of credit works like a credit card in the sense that you have a credit limit and can borrow as needed and pay at least a minimum payment based on your balance. A loan usually refers to borrowing a fixed amount at one time and paying a set amount each month for the term of the loan. Secured means the loan is backed by a specific asset that the lender can take if you don’t make the payments.
Secured Bank Loan Vs. Unsecured Bank Loan
