Personal Loan vs. Personal Line of Credit: How to Choose

Interest rate: &nbsp;Also commonly called the “ mortgage rate ,” this is how much interest you’ll pay to borrow the money, as a percentage of the total loan amount.
APR: &nbsp;This reflects the annualized cost of taking out your loan and includes interest, fees, points, mortgage insurance, and more.

Personal loans and personal lines of credit are similar financing options, but differ when it comes to funding, interest rates, repayment, and more.