LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
How Does LendingTree Get Paid? Privacy Secured | Advertising DisclosuresWritten by Carol Pope | Edited by Jessica Sain-Baird | Updated July 8, 2024
How Does LendingTree Get Paid?LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
How Does LendingTree Get Paid?| Lender | APR range | Line amounts | Annual fees | Availability |
|---|---|---|---|---|
| 8.74% - 21.74% (with autopay) | $2,000 - $50,000 | $65 (first year waived) | 11 states | |
| 14.25% - 18.00% | $500 - $25,000 | None | Nationwide | |
| 14.25% - 18.75% (with autopay) |
Please note that rates, loan amounts and fees apply to KeyBank’s Preferred Personal Line of Credit.
Please note that APRs and line amounts apply to Regions’ unsecured personal line of credit.
8.74% - 21.74% (with autopay)
Please note that rates are for unsecured personal lines of credit.
Line amounts Annual fee$65 (first year waived)
Fifth Third offers personal lines of credit (PLOCs) with some of the lowest rates around. It charges an annual fee, but this small expense might be worth it depending on the rate you qualify for.
But first, you must live in one of the 11 states where it does business. Also, the smallest line you can get is $5,000. You don’t have to max out your line, but having a lot of unneeded available credit could lead you to overborrow.
You’ll have to contact Fifth Third to ask about its specific borrower requirements. You can’t prequalify or apply online. However, you can schedule a meeting with a banker either over the phone or in a branch.
You must also live in one of these 11 states to borrow: Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, South Carolina, Tennessee or West Virginia.
Although it has branches in a handful of states, First Tech Credit Union is primarily a digital lender. You can apply online and get help from a representative virtually, if you need it. Once First Tech approves you, you can manage your PLOC though its highly rated mobile app and an online customer portal.
Since it’s a credit union, you need to join to borrow. And unlike some of its rival credit unions, First Tech has membership requirements to meet before you qualify.
You can apply before you become a member, but you’ll have to join First Tech to accept your PLOC. To qualify, you need to meet one of the requirements below:
14.25% - 18.75% (with autopay)
Please note that rates, loan amounts and fees apply to KeyBank’s Preferred Personal Line of Credit.
Line amounts Annual feeWhether you need a large line of credit or a small one, KeyBank could be a solid choice. You can borrow up to $25,000 with KeyBank’s Preferred PLOC. But if you only need a little, consider KeyBasic. This PLOC has line amounts from $250 to $5,000, with annual percentage rates (APRs) between 17.25% and 24.25%.
After it approves you, KeyBank doesn’t issue a debit card so you can access funds. Instead, you’ll only get checks. Not all places take checks, and even if they do, writing out checks can be inconvenient.
You must have a credit score of 780 or higher (and enroll in autopay with a KeyBank account) to get its lowest APRs. You must also be at least 18 years old and a U.S. citizen to qualify.
KeyBank is only available in Alaska, Colorado, Connecticut, Idaho, Indiana, Maine, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont and Washington.
16.25% - 22.55% (with autopay)
Line amounts$1,000 - $25,000 ($5,000 in California)
Annual feePLOCs have variable rates. Variable rates go up and down with the market, so they can be risky in a volatile economy. PNC personal lines of credit offer some peace of mind by capping APRs at 24.00%.
Excellent-credit borrowers might want to keep their options open, though. PNC’s minimum APR isn’t the lowest, so you might find better rates elsewhere.
PNC states that its lowest rates go to “well-qualified applicants,” but it doesn’t elaborate further. Generally, you need at least good credit to qualify for a PLOC and a score well into the 700s to get the best rates.
PNC’s PLOCs are available in about half the country. See if your state is eligible by visiting its website.
Please note that APRs and line amounts apply to Regions’ unsecured personal line of credit.
Line amounts Annual feeRegions offers two types of lines of credit: secured and unsecured. A secured PLOC requires collateral which, in this case, is your savings account.
Regions encourages its credit-limited borrowers to consider a secured PLOC. These are easier to qualify for and you can improve your credit with on-time payments. Still, secured PLOCs can be risky. If you can’t pay, Regions will recoup its losses by seizing what you owe from your savings account.
You can’t apply for a Regions PLOC unless you’ve been an account holder for at least six months. Once you’ve met this benchmark, you can apply online, over the phone or in person for an unsecured PLOC. To get a secured PLOC, you must apply at a branch.
You have to live in one of the following states to bank (and borrow) with Regions: Alabama, Arkansas, Florida, Georgia, Iowa, Illinois, Indiana, Kentucky, Louisiana, Missouri, Mississippi, North Carolina, South Carolina, Tennessee and Texas.
Of all the lenders on this list, U.S. Bank is probably the most accessible. It offers PLOCs nationwide over the phone and online. You can pay with your line by card (many lenders only issue checks). And perhaps most notably, you can prequalify without hurting your credit score.
At the same time, U.S.Bank might not make sense if you prefer a face-to-face experience. It does much of its business virtually (unless you’re lucky enough to live near a branch).
It’s hard to get U.S. Bank’s lowest rates — you have to have a credit score of at least 800. But to generally qualify, it only requires 680. You must also have a current U.S. Bank checking account with no recent overdrafts.
A personal line of credit is a type of financing that you can borrow from over and over again. You must stay within your credit limit, and paying back what you owe frees up credit that you can borrow from again.
In this way, personal lines of credit are similar to credit cards — both are a type of revolving debt. This is also called open-end credit. You usually need to have at least good credit to qualify for a PLOC.
An open-end credit transaction allows you to continuously borrow money up to a predetermined limit. You only have to repay what you borrow. Personal lines of credit, credit cards and HELOCs are examples of open-end credit.
A closed-end credit transaction provides a lump sum of money up front. Then you’ll repay that lump sum in installments over a certain period of time. Installment loans (like personal loans, auto loans and mortgages) are examples of closed-end credit.
Many personal lines of credit have a life cycle with two stages: the draw period and the repayment period. These stages usually last three to five years each.
You can usually borrow between $1,000 and $50,000 with a PLOC. Your lender might also have a minimum draw amount. For example, you might not be able to draw less than $50 at a time.
Instead of the draw/repayment period model, some PLOCs only have a draw period. In these instances, your outstanding balance might be due in full once your draw period is over. Or you might have a continuous draw period, depending on your lender. These PLOCs work like a credit card (you can borrow as long as you make your minimum monthly payments and stay within your credit limit).
On a personal line of credit, you pay interest on what you borrow, and interest accrues immediately. The APR is usually variable, which means it can fluctuate each month. This differs from fixed interest rates, which stay the same for the duration of your loan term.
Variable interest rates are guided by the Wall Street Journal prime rate.
The Wall Street Journal prime rate (also called the U.S. prime rate) is the average interest rate that most lenders charge their most creditworthy customers. This rate tends to fluctuate based on the Federal Reserve rate, but not always.
To illustrate this, let’s say you see a PLOC with a starting APR of prime plus 5.00%. Also imagine that the prime rate is 8.50%. That means borrowers with the best credit could get a minimum APR of 13.50%, or 8.50% plus 5.00%.
Each lender sets its own fees on personal lines of credit. As you read the fine print, keep an eye out for extra charges such as:
Flexible. Only borrow what you need, and only pay interest on what you borrow.
Competitive rates. PLOCs tend to have lower interest rates than credit cards.
Future funding. A line of credit can be helpful for long-term projects with no set end date.
Not everyone qualifies. In most cases, you need to have good to excellent credit to get a PLOC.
Fluctuating monthly payments. Your monthly payments depend on variable interest rates and how much you draw.
Fees. Between annual fees and transaction fees, PLOCs can get expensive.
Interest. Interest accrues as soon as you draw from your PLOC.
You can use a personal line of credit for nearly anything. In particular, this type of funding can be a helpful way to tackle ongoing expenses. These could include home improvement or medical bills related to a chronic illness.
If you’re juggling multiple credit card bills and you have strong credit, you could also use a PLOC for debt consolidation.
Many banks also offer a personal line of credit as overdraft protection. In this scenario, your bank will charge overdrafts to your line of credit, bypassing overdraft fees. You will, of course, have to pay the charge back, plus interest.
Getting a personal line of credit follows a similar process to getting other types of loans.
Some lenders specialize in PLOCs for bad credit, so you might qualify with a low score. However, that doesn’t mean that rates will be affordable. On top of higher-than-average interest, bad-credit PLOCs can come with draw fees as high as 10.00%. Traditional banks and credit unions usually require a FICO score of at least 680 (sometimes higher).
If you still think that a PLOC is your best option, you could consider securing it with a savings or investment account. Secured loans and lines of credit can be easier to qualify for since the lender can repossess your collateral if you don’t pay.
A personal loan may be best if you need a lump sum of cash rather than a stream of funds. If you have a one-time need for money and know how much that will be, a personal loan may be for you.
A personal loan will give you a lump sum of money that you will pay back in monthly installments, plus interest. Like lines of credit, most personal loans are unsecured. Unlike lines of credit, personal loans come with fixed interest rates.
You can get a personal loan from a wide variety of lenders. Loans from brick-and-mortar banks tend to be best for good-credit borrowers due to stricter eligibility requirements. It’s usually easier to qualify for online loans, but they typically have higher APRs.
Compared to credit cards, a personal line of credit may be better for large, infrequent purchases. Groceries, gas and other everyday purchases make more sense for credit cards, especially if you earn cash back rewards and pay your bill in full each month.
Interest rates may be lower on a personal line of credit, but that doesn’t mean they are always less expensive. Credit cards come with a built-in grace period. You won’t have to pay interest as long as you pay your balance in full every month.
Also, some lenders charge a transaction fee every time you draw from your PLOC. These fees don’t apply to credit cards.
Due to generally lower interest rates, you might consider a HELOC over a personal line of credit. But that’s assuming you’re a homeowner and you are certain you can pay back what you borrow.
A home equity line of credit (HELOC) is like a personal line of credit, with one major difference. HELOCs use your home as collateral. Since a HELOC is secured, it usually carries a lower interest rate than unsecured personal lines of credit.
HELOCs can be risky. If you don’t pay back your HELOC, the lender can foreclose on your house. HELOCs also usually come with closing costs that can range from 2% to 5% of your HELOC limit.
