A line of credit (LOC) is an open-ended loan that can be used for any purpose. It is a revolving loan, similar to a credit card. That is, YOU can tap the line of credit repeatedly and pay the money back repeatedly. It has a maximum limit but no set expiration date.


When you’re borrowing money, you’ll likely need to make a decision about a secured loan vs. unsecured loan. What’s the difference? Here’s an explanation about choosing a secured LOC vs. unsecured LOC.

A secured LINE-OF-CREDIT is connected to a piece of collateral – something valuable like a car or a home. With a secured LINE-OF-CREDIT, if you don’t repay the loan as you have agreed that collateral can be automatically taken or repossessed. A HOME EQUITY-LINE OF CREDIT or HELOC is the most common type of secured LOC. The money is borrowed against the equity in the home.

An unsecured LINE OF CREDIT** is not protected by any collateral. If you default on the loan, the lender can’t automatically take your property. The most common types of unsecured loan are credit cards, and personal LINES-OF-CREDIT.

Both secured and unsecured lines of credit have advantages over other types of loans. They can be used (or not used) flexibly and repeatedly, with low minimum payments and no demands to pay in full as long as the payments are up to date.

The secured line of credit is clearly the better option if at all possible, as it keeps YOUR costs of borrowing to a minimum.

Citizens Trust Bank offers both to help make your dreams reality

Personal or Unsecured Line of Credit

Lower interest and one monthly payment – financial control is within reach.

Secured Line of Credit

Fixed or variable rates + Borrow up to $15,000 – based on you credit worthiness

Home Equity Line of Credit (HELOC) - Turn your equity into cash

If you have owned your home for years, have a low mortgage balance and plan to borrow soon, our Home Equity Lines would be secured by a first or second mortgage on owner-occupied dwellings. What you should know about Home Equity Lines of Credit.

Borrow up to 80% of the equity in your home + Set up automatic payments for your line, directly from your CTB Checking Account.