The interest rate on a line of credit is normally stated as a fixed rate-the prime rate plus a percent.

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The interest rate on a line of credit is often a variable rate that is tied to the prime rate. It may be expressed as the prime rate plus a percentage, but this percentage can fluctuate based on changes to the prime rate. Therefore, the interest rate on a line of credit is generally not a fixed rate.

The Interest Rate on a Line of Credit Is Normally