It’s free, simple and secure
9.75%-11.25% (with autopay)
$5,000-$100,000
$65 (first year waived)
11 states
5 year draw period; 10 year repayment period
Fifth Third offers personal lines of credit (PLOCs) with some of the lowest annual percentage rates (APRs) around. It charges an annual fee, but this small expense might be worth it depending on the rate you qualify for.
However, Fifth Third personal lines of credit aren’t available for most people — it only does business in 11 states. And if you do live in an eligible state, you’ll have to apply over the phone or at a branch.
Fifth Third Bank (OH) is only available if you live in Ohio (home to its headquarters), Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, South Carolina, Tennessee or West Virginia. If you do live in one of these states, you can call Fifth Third at 866-671-5353 or stop into a branch to apply.
13.25%-18.00%
$500 - $10,000
None
Nationwide
Continuous draw period
On-time payments on a small personal line of credit can help you boost your credit score — First Tech’s lower minimum line amount could be perfect for this. Smaller lines of credit are generally easier to qualify for, and having less available credit can also help you avoid taking on too much debt.
But since it’s a credit union, you’ll need to become a First Tech member to borrow. To meet First Tech’s requirements, most people will also need a membership with the Oregon Computer History Museum or the Financial Fitness Association. First Tech will help you do this, and will even pay for your first year of dues.
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:
13.25%-17.75% (with discounts)
$500-$25,000
None
15 states
Continuous draw period
Put KeyBank on your radar, especially if you’re an established member.
If you have a checking account with at least five transactions in a calendar month, or more than one eligible KeyBank account, you could get a rate discount of 0.75%. It offers another 0.25% discount for setting up autopay with your KeyBank checking account.
Unfortunately, KeyBank doesn’t issue cards along with its personal lines of credit; you can only move money online or access it by check or in a branch. Not having a card could make in-person purchases a pain.
You could qualify with lower credit, but KeyBank only gives its best rates to people with 780-plus credit scores. You’ll also need to be at least 18 years old and have a Social Security number.
KeyBank is only available in Alaska, Colorado, Connecticut, Idaho, Indiana, Maine, Massachusetts, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont and Washington. Further, you’ll also have to apply in person — use KeyBank’s branch locator tool to find one close to you.
35.99%
$1,000 - $8,000
None
41 states and the District of Columbia
Continuous draw period
If you aren’t exactly sure how much you need to borrow, a PLOC from Pathward could be a good alternative to a bad credit loan. Traditionally, you’ll need at least good credit (670 or higher) to get a personal line of credit — Pathward may be willing to work with lower scores.
Pathward is unique in a few ways. Your due dates usually align with your pay day, though that can mean juggling multiple monthly payments if you get paid every two weeks.
Pathward PLOCs also have fixed rates, when most PLOCs have variable rates. A fixed rate means your rate won’t change, but a flat 35.99% APR is very high if you have excellent credit.
To get a Pathward PLOC, you’ll need to be the legal age in your state and have a personal checking account, phone number and email address.
Pathward isn’t available in Colorado, Maine, Massachusetts, Nebraska, New Hampshire, New York, Oregon, Rhode Island or West Virginia.
15.25%-21.55% (with autopay)
$1,000-$25,000 ($5,000 in California)
$50
27 states and the District of Columbia
Continuous draw period
It can be nerve wracking borrowing money when the economy is up in the air.
PNC has four ways it can help if you experience hardships, like a layoff. You can skip a payment, close your account and pay your balance with a reduced rate or settle for less than you owe by paying a lump sum.
However, you can’t apply online, and PNC isn’t available everywhere. And like some other lenders on this list, it also doesn’t give you a card to access your money.
PNC says that its lowest rates go to “well-qualified applicants,” but it doesn’t elaborate further. Generally, you’ll 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 Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Massachusetts, Maryland, Michigan, Missouri, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Wisconsin, West Virginia and the District of Columbia.
11.50%-21.50%
Up to $25,000
None
Nationwide
Continuous
U.S. Bank makes it easy to access your line of credit — that is, once you’re a member. Only U.S. Bank members are eligible for PLOCs, but you could open a checking account and then apply.
After you’re a member and approved, though, you can pay with your line by card. In contrast, many lenders just send out checks (if that — some will only allow online transfers).
Still, using your card could be expensive. If you use it to draw money from an ATM, U.S. Bank charges 4% of the total amount ($10 minimum). This is similar to a credit card cash advance.
It’s hard to get U.S. Bank’s lowest rates — you’ll need to have a credit score of at least 800. To generally qualify, though, it only requires a 680 score. You’re also required to have a current U.S. Bank checking account.
A personal line of credit works sort of like a credit card. They’re both types of revolving debt, which means you can borrow over and over, as long as you have the credit available. Making payments frees up credit that you can use again.
So, why would you want a PLOC instead of a credit card? PLOC rates are generally lower.
According to LendingTree’s interest rate tracker, the average credit card APR is 24.33%, as of this writing. In contrast, the starting APR for Fifth Third Bank (the cheapest PLOC lender on our list) is just 9.75%.
That doesn’t mean that PLOCs always win out over other types of financing, like credit cards and personal loans. Learn how personal lines of credit work and if it makes the most sense for you.
The great thing about personal finance is that it’s personal. There are tons of different financing options available, so no worries if a PLOC isn’t a good fit.
Credit cards make more sense for everyday purchases — as long as you pay your balance in full each month.
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. With PLOCs, there’s no way to avoid interest — it starts accruing interest as soon as you make the charge.
Some credit cards earn cash back and rewards. Using them responsibly to pay for things like groceries and gas could help you earn a lot. However, PLOCs don’t come with benefits like this.
If you have a one-time need for money and know how much that’ll be, a personal loan may be for you.
A personal loan will give you a lump sum of money that you’ll pay back in monthly installments, plus interest. Interest rates are fixed, so they stay the same as you pay back your loan.
Since it comes as a lump sum, a personal loan can help you avoid racking up too much debt. You’ll pay interest on the entire loan, but it isn’t something you can borrow from more than once.
Homeowners considering a PLOC might want to check out a HELOC instead. HELOCs tend to have lower rates — but they’re also riskier, since they use your house as collateral.
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 has a lower interest rate than unsecured personal lines of credit.
HELOCs can be risky, however. If you don’t pay it back, the lender can foreclose on your house.
You can use a personal line of credit for almost anything, but they make the most sense when you need ongoing access to an unknown amount of cash (a home renovation project is an example).
A personal line of credit works sort of like a credit card. The lender will give you a credit limit, and every time you borrow, you use up some of your credit line. When you pay it back, that credit becomes available for you to borrow from again.
You usually need a credit score of at least 670 to get an affordable personal line of credit. If you’re having trouble qualifying, see if your bank offers secured PLOCs. These use a savings or investment account as collateral, so they’re usually easier to get.
A personal line of credit can be better than a credit card if you know you can’t pay your balance in full each month.
PLOCs usually have lower rates than cards, but credit cards have a grace period. As long as you pay your balance before the end of your billing cycle, you won’t pay interest. With PLOCs, interest starts accruing as soon as you borrow.
You also can’t earn rewards or cash back like you can with some credit cards.
