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Describe at least one way in which a line of credit is different from a loan.

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A line of credit is similar to a credit card in that it is a flexible borrowing solution. You can draw on this revolving loan by writing a check. You are can also borrow any part of your credit line again once you have repaid it. There are no payments until you use your line.

With a personal loan, you get the whole loan when you're approved and you start paying interest right after on the full amount. You have a schedule of payments that will get smaller until the loan is paid off.

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