A line of credit lets you borrow (draw) the amount you need as you need it. There are no fees to open a Line of Credit through LendingClub, and you make payments only on the credit you've actually used. A line of credit works best for periodic, short-term needs for an infusion of cash.
For example, if you have a $50,000 line of credit and withdraw $10,000, your credit limit will drop to $40,000. Once you repay that $10,000 (plus any applicable interest and fees), the amount of credit available returns to $50,000.
For more information on determining if a Line of Credit or Traditional Term Loan is better for you, visit our blog or call our Client Advisor team at 855-846-0153.