A personal line of credit is a
A)credit arrangement that has no extra costs.
B)prearranged loan for a specified amount that you can use by writing a special check.
C)credit arrangement that has no specific repayment plan.
D)synonym for installment cash credit.
E)synonym for single lump-sum credit.

Question

Quizplus · Accepted Answer

A personal line of credit is a prearranged loan for a specified amount that you can use by writing a special check. It is a flexible borrowing option that allows you to draw funds as you need them instead of receiving the full amount upfront. Unlike a traditional loan, you only have to repay the amount you borrow, with interest, and you may continue to use the line of credit as long as you make payments on time.

A Personal Line of Credit Is a