A personal line of credit is a flexible loan option that allows individuals to borrow money up to a predetermined limit. Unlike a traditional loan, where you receive a lump sum, you can withdraw funds as needed and only pay interest on the amount you use. This makes it a useful financial tool for managing unexpected expenses or funding personal projects. Typically offered by banks and credit unions, a personal line of credit can be secured or unsecured. A secured line requires collateral, such as a savings account or property, while an unsecured line does not. Borrowers should consider interest rates and repayment terms before applying.