 TITLE: How Does a Personal Line of Credit Affect Your Credit? CONTENT: 5 Reasons a Personal Line of Credit May Not Be a Good Fit\n---------------------------------------------------------\nAs personal lines of credit become less popular with financial institutions, new types of credit are replacing them. Here are a few reasons you might not want to choose a personal line of credit—and what you might choose instead.\n1.  **You can't find a personal line of credit.** Not every bank offers personal lines of credit. As with any type of credit, you'll have to shop for good terms.\n2.  **Your credit card offers a pay-in-installments feature.** Some credit cards now allow cardholders to separate out large purchases and pay them off in regular installments over time. My Chase Plan, offered on Chase cards like the Chase Freedom Flex℠, is one example. This will allow you to pay off your purchase off as if it's a separate loan.\n3.  **A** **personal loan** **works just as well.** If you want to borrow a set amount of money at a favorable interest rate, a personal loan might work for you. Bonus: Personal loans count as installment loans, not revolving debt, so your credit utilization won't be affected.\n4.  **You can buy now, pay later,** often without interest, using a company like Klarna or Afterpay. No interest beats low interest any day.\n5.  **A** **home equity line of credit (HELOC)** **is a better fit.** Although some personal lines of credit offer six-figure limits, a HELOC may be more appropriate if you're hoping to take on a major home repair or renovation. A HELOC may offer a lower APR and a larger credit line. The downside: Your home is collateral, and can be at risk of repossession if you default on your loan.\nA personal line of credit—or any of the choices listed above—is a better option than a payday loan or title loan, either of which can trap you into a cycle of debt with ultra-high interest rates, and ballooning payments. END