What is a line of credit interest rate?


Quick Answer

A line of credit interest rate is the interest rate amount associated with a line of credit and is determined by the borrower's credit history and other risk factors. The interest rate is only assessed on the amount that is used, according to the Canadian Imperial Bank of Commerce.

Continue Reading

Full Answer

Interest rates on personal lines of credit, which are unsecured, are often higher than interest rates on home equity lines of credit, which are secured by the equity in a buyer's home, explains Bankrate. Like other personal loans, the interest rate on a personal line of credit is not tax deductible, as stated by Lending Tree. However, the interest rate on a home equity line of credit is deductible with limits, according to Nolo.

Learn more about Credit & Lending

Related Questions