Loans and Credit

Loans and lines of credit are financial transactions in which a lender advances money to a borrower, who agrees to repay the money with interest by a specified time. Loans are usually secured by collateral, whereas lines of credit are unsecured lending. Typically, a loan is obtained for a very specific purpose and the funds are drawn down one time only. With a Line of Credit, the borrower may draw down multiple times up to the limit of the loan, and there are usually few restrictions on how the money can be used. The most common types of Loans and Credit are Home Loans, which include Home Equity Lines of Credit, Home Equity Loans, Home Mortgages and Home Refinance Loans.