Where to find a personal line of credit
Most major banks offer personal lines of credit, but the terms, interest rates, and approval process vary widely. The banks most likely to have them available are Chase, Bank of America, Wells Fargo, Citibank, and US Bank. Credit unions often have lower rates than banks and may be easier to work with if your credit score is below 700. Online lenders like LendingClub, Upgrade, and SoFi also offer personal lines of credit, sometimes with faster approval than traditional banks.
The catch is that not every bank offers this product at every moment. Some banks have paused or discontinued their personal line of credit offerings in recent years. Before you spend time on an application, call the bank directly or check their website to confirm they currently have personal lines of credit available to new customers in your state.
Your credit score, income, and existing debt load will determine whether you are approved and what interest rate you receive. Banks typically require a credit score of at least 650 to 700, though some credit unions will work with lower scores. Having a checking or savings account with the bank already can improve your chances.
Key Takeaways
- Chase, Bank of America, Wells Fargo, Citibank, and US Bank are the largest banks offering personal lines of credit, though availability varies by state and changes over time.
- Credit unions often charge lower interest rates than banks and may approve borrowers with credit scores below 700.
- Online lenders like LendingClub, Upgrade, and SoFi can approve you faster than traditional banks, sometimes within days rather than weeks.
- You will need a credit score of at least 650 to 700 for most banks, proof of income, and a Social Security number to be considered.
- Calling the bank directly is the fastest way to confirm they offer personal lines of credit and whether you meet their current requirements.
How banks decide whether to offer you a line of credit
Banks pull your credit report and check your credit score before making a decision. They also look at your income, employment history, and how much debt you already carry. A debt-to-income ratio above 50 percent (meaning your monthly debt payments are more than half your monthly income) will usually disqualify you, even if your credit score is good.
If you have been with the same bank for a year or more and have a clean account history, you have a better chance of approval. Some banks will offer a line of credit to existing customers with lower credit scores than they would require from someone new. Having a co-signer with stronger credit can also help, though not all banks allow this.
Interest rates and fees vary by bank and your credit profile
Personal line of credit interest rates range from about 7 percent to 36 percent, depending on the lender and your creditworthiness. Banks with the lowest rates (7 to 15 percent) typically require a credit score of 750 or higher. If your score is between 650 and 700, expect rates in the 18 to 28 percent range.
Many banks charge an annual fee to maintain the line of credit, ranging from $0 to $100 per year. Some charge a fee only if you actually draw money from the line. A few charge an origination fee (a one-time charge when the line is opened, usually 1 to 5 percent of the credit limit). Read the terms carefully, because these fees add up over time.
Interest is charged only on the amount you actually borrow, not on the full credit limit. If you have a $10,000 line of credit but only use $3,000, you pay interest only on that $3,000.
Large banks versus credit unions versus online lenders
Large banks like Chase and Bank of America have the fastest approval process if you are already a customer, sometimes within 24 hours. They offer high credit limits (often $5,000 to $25,000 or more) and flexible terms. The downside is that their interest rates are usually higher than credit unions, and they have stricter credit score requirements.
Credit unions typically charge 2 to 5 percentage points less in interest than banks. They are more willing to work with people who have credit scores between 650 and 700. The tradeoff is that credit limits are often smaller (usually $500 to $10,000), and approval can take longer. You must be a member to borrow, which usually means opening a savings account and waiting 24 hours before you can apply.
Online lenders like LendingClub and Upgrade can approve you in days and fund the money within a week. They often have lower credit score requirements than banks. However, their interest rates are frequently higher than banks, and some charge origination fees. Online lenders also tend to offer smaller credit limits than traditional banks.
What documents you will need to provide
Every bank will ask for your Social Security number, date of birth, and current address. You will also need to provide proof of income, which can be recent pay stubs, tax returns, or a letter from your employer. If you are self-employed, banks typically want to see two years of tax returns.
Some banks ask for proof of employment, such as a recent paystub or an employment verification letter. A few will ask for bank statements to verify your savings and checking account activity. If you have a co-signer, they will need to provide the same documents.
You do not need to provide these documents upfront. Most banks will tell you during a phone call or online pre-qualification whether you likely meet their requirements before asking you to submit anything formal.
How long approval takes and when you get the money
Approval timelines depend on the lender. Online lenders are fastest, often approving you within 24 to 48 hours and funding within 3 to 7 business days. Large banks typically take 3 to 5 business days if you are an existing customer, and 5 to 10 business days if you are new. Credit unions usually take 5 to 10 business days.
Once approved, the bank will set up your line of credit and you can begin drawing money immediately. Some banks allow you to draw the first amount online or by phone. Others require you to visit a branch or request a check. A few will deposit the initial draw directly into your checking account.
The money is not automatically deposited into your account. You have to request it, and the bank will process your request within 1 to 3 business days. This is different from a personal loan, where the full amount is deposited upfront.
Comparing specific banks side by side
The table below shows typical terms from major lenders, but these figures change based on market conditions and your individual credit profile. Contact the lender directly for current rates and limits in your area.
| Lender | Minimum Credit Score | Interest Rate Range | Typical Credit Limit | Annual Fee |
|---|---|---|---|---|
| Chase | 700+ | 9% to 21% | $1,000 to $25,000 | $0 |
| Bank of America | 700+ | 10% to 20% | $1,000 to $20,000 | $0 |
| Wells Fargo | 680+ | 11% to 22% | $1,000 to $15,000 | $0 |
| LendingClub | 600+ | 10% to 36% | $1,000 to $25,000 | $0 |
| Upgrade | 620+ | 8% to 35% | $500 to $25,000 | $0 |
| Credit Union (average) | 650+ | 7% to 18% | $500 to $10,000 | $0 to $50 |
These figures represent what lenders typically offer, but your actual rate and limit depend on your credit score, income, and debt history. Some lenders adjust their terms frequently, so the ranges shown may shift. Always verify current terms directly with the lender before you decide.
Frequently Asked Questions
Can I get a personal line of credit with a credit score below 650?
Some online lenders and credit unions will work with scores as low as 600, but you will pay higher interest rates and receive a smaller credit limit. LendingClub and Upgrade both consider applicants with scores in the 600 to 650 range. Credit unions are often more flexible than banks on credit score requirements.
What is the difference between a personal line of credit and a personal loan?
A personal loan gives you the full amount upfront in one lump sum. A personal line of credit works like a credit card — you have access to a pool of money and draw from it as needed, paying interest only on what you use. Lines of credit are better if you need money gradually over time.
Do I need to be a customer of the bank already to get a personal line of credit?
No, but existing customers usually get approved faster and may receive better terms. If you are not a customer, you can still apply, but approval may take longer and you may need a higher credit score. Some banks require you to open a checking account before they will consider you for a line of credit.
Will applying for a personal line of credit hurt my credit score?
Yes, each application triggers a hard inquiry on your credit report, which temporarily lowers your score by a few points. Multiple applications within a short time period (more than 2 to 3 in 30 days) can have a bigger impact. Space out your applications if you are shopping around with multiple lenders.
What happens if I do not use the line of credit after I open it?
If there is no annual fee, you can simply leave it open and unused. If there is an annual fee, you will be charged even if you never draw money. Some banks will close the account if it remains unused for a long period (usually 12 months or more), so check the terms before opening.