When you can access a line of credit, you can use these funds when you need them or not at all, depending on your circumstances. Lines of credit are revolving, which means that you can access money up to a pre approved amount. However, once you reach the limit, you have to repay some of the borrowed funds to access money from the line of credit once more. This is a significant difference from the term loan, where you will get one lump sum following the application. You will then be expected to repay that with interest until that account is closed.
