Should I get a personal loan or a line of credit?

Quick decision framework

Pick a personal loan if you need a specific lump sum, want fixed payments, and prefer a clear payoff date.

Pick a line of credit if you need flexible ongoing access, aren't sure how much you'll need, and have the discipline to manage revolving credit.

Side-by-side comparison

When personal loans win

• Debt consolidation (forces a payoff schedule)
• Major one-time purchase (renovation, medical, wedding)
• You want rate certainty in a rising-rate environment

When lines of credit win

• Home renovation in stages
• Emergency reserve fund
• Income that fluctuates (commission, freelance)
• Short-term cash flow gaps you'll repay quickly

Cost example — $15,000 over 5 years

• Personal loan @ 12%: $334/mo, $5,030 total interest, paid off in exactly 60 months
• HELOC @ Prime+1% (~8.20%): ~$306/mo if disciplined; could stretch to 10+ years and cost $7,000+ in interest if you only pay minimums