All about a personal line of credit | Advice

ADVICE-Updated March 19, 2025

All about a personal line of credit.

Cost-effective financing with the flexibility you want.

2-minute read

Life is full of surprises—and while some are welcome, others inspire a much different response. A personal line of credit can allow you to seize opportunities when they arise and get through those trying times with a little less stress.

How a personal line of credit works.

A personal line of credit is considered a revolving account with a variable interest rate that lets you borrow money within a set limit. Any money you’re not using remains available to you. And interest only accrues for the funds you borrow.

You can repay what you borrow immediately, or over time in regular or fixed minimum monthly payments, with interest charged only on the amount owed. You also need to be prepared if interest rates rise—the interest will affect the total amount you owe.

A loan to meet your needs.

Quick access to ongoing funds without having to reapply can help you respond to the unexpected. Since the loan account is not for a specific purpose, a personal line of credit can be useful in many ways: from energy-efficient renovations to car repairs, home office expenses to debt consolidation, funding a wedding to paying for summer camps. The list is endless, but the flexibility means you need to be disciplined to minimize the interest by repaying funds on time.

Consolidate your debt.

Did you know that you can transfer higher-interest balances to your personal line of credit? Also known as debt consolidation, doing so allows you to boost liquidity and pay less interest, enabling you to tackle debt faster.

Take care of your loved ones.

No one wants to leave their family saddled with extra debt. Thankfully, you can ensure your loved ones are covered with our line of credit insurance.¹

The balance of your line of credit will be paid back upon the passing of one of the participants, as per the terms and conditions. You'll also get accidental dismemberment coverage, which pays back 33% to 100% of your balance, depending on the case. Your premium is based only on the funds you use, and it's automatically debited every month.

An option worth considering.

Even with possible interest rate fluctuations, a personal line of credit can be an attractive option, offering a lower interest rate than credit cards. Learn more about how to tap into the lower interest rate and flexibility that come with a personal line of credit.

For personalized advice on what type of loan is the right fit for you, contact a member of our team today—they'll be happy to guide you every step of the way.

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1. Issued by Industrial Alliance, Insurance and Financial Services Inc. Some conditions apply. For more details, refer to the summary of the insurance product (PDF, 823 KB) and the insurance certificate (PDF, 836 KB).

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