If you are wanting to borrow money with flexibility, line of credit loans will differ from a short term loan option. They offer a maximum spending limit rather than an agreed cash amount that is transferred into your bank account. You can usually set a limit, use the money how you want to, and repay the amount you have spent with interest, but borrow again from the same open line of credit loan as needed.

While we do not offer line of credit loans at QuidMarket, we can offer a fast way to borrow money in an emergency. You can borrow up to £600 as a new customer and spread repayments over 3 – 6 months based on what you can afford. We can provide fast approval and usually same day cash to resolve your circumstances today.

With line of credit loans explained, you’ll be able to compare unsecured loans and understand the difference between a line of credit and a loan. With our short term alternative, we can provide the following features:

  • New customers can borrow between £300 and £600*
  • Returning customers may be eligible to borrow up to £1,500*
  • Flexible repayment terms between 3 – 6 months
  • QuidMarket is an FCA Authorised responsible lender
  • No hidden fees on our loans
  • We offer an alternative to a line of credit loan for bad credit
  • No guarantor or collateral required
  • Apply online quickly and easily
  • Decisions made by humans, not computers
  • You’ll usually receive your loan the same day as approval

*Loan amounts and repayment terms are dependent on affordability checks

If you want to see how we can help you today, use our loan calculator to see how much the loan and term you require will cost and click apply now. You can then compare line of credit loans and choose the best option to resolve your short-term financial issue.

How much do you need?

£300 £1500

For how long?

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This is for illustration purposes only. Your repayment schedule will be confirmed during your application

*All applications are subject to affordability checks*

Representative example: Borrow £300 for 3 months / Interest payable £154.38 / Total amount payable: £454.38 in 3 instalments / 3 payments of £151.46 / Representative 1301.1% APR / Interest rate 292% per annum (fixed) / Maximum APR 1625.5%

Compare short term loans on Clear and Fair

As a new customer the minimum repayment period is 3 months and the maximum is 6 months. Additional options may be available to you as a repeat customer.

What is a Line of Credit Loan?

Line of credit loans are a flexible form of credit, usually from a bank or traditional financial institution, as well as some online lenders. Similar to a credit card, they offer a limited amount of funds that can be used when you need it. The cash you use will need to be paid with interest over a pre-agreed period. Interest will be charged as soon as money is accessed, but you will only pay interest on what you spend. If you do not spend any of your open line of credit loan, you will not be charged interest. Borrowers usually make minimum monthly payments with varying amounts, but can make fixed payments or a percentage of the balance owed.

A line of credit loan agreement tends to be unsecured, which means there is no collateral securing the loan. However, some lenders may allow borrowers to provide collateral to secure more favourable terms, such as a lower interest rate. This is something to consider when looking for the best line of credit loan, especially if you need a large amount of cash.

How is a Line of Credit Different From a Loan?

When looking at the difference between a line of credit and a loan, you’ll want to see which is best for your circumstances. Depending on what you need the money for, a personal loan allows you to borrow a fixed amount of money that is to be repaid at a fixed amount with interest over a period of time. The money is transferred directly into your bank account for you to spend, then the repayments are to be made directly to the lender. This usually means that loans are easy to budget for, particularly if you have the money to comfortably repay.

With a flexible line of credit loan, you are offered a capped amount of cash to spend that only starts incurring interest as soon as you withdraw. As there is a limit, you cannot overspend, and it is recommended that you stay below your limit to keep a healthy credit utilisation. This is a flexible way to borrow money, but it can also carry higher interest rates, especially if you need access to a large amount of cash.

Whether you choose a cash loan or an open line of credit loan will depend on your situation. If you only need to borrow a small amount of money to cover an unexpected expense, you may prefer to borrow with fixed instalments over a few months. When making your decision, you should factor in:

  • What you need the money for
  • How much money you need
  • How long you will need the money for
  • Your budget
  • Your current expenses

By keeping all of these in mind, you can build a clearer image of what it is that you need from your loan or line of credit.

The Advantages of an Open Line of Credit Loan

Like many other forms of finance, there are several advantages when looking at how to get a line of credit loan. These can include:

  • The ability to borrow only the money you need – you do not have to spend all of the money in your unsecured line of credit loan. You can withdraw what you need without hitting the limit.
  • Interest incurred only on the funds borrowed – you can set the line of credit limit at whatever figure you think is appropriate, but you will not need to repay any interest until you have withdrawn cash. This means that if you do not spend anything, you will not owe any interest.
  • Flexibility – with a line of credit, you have the flexibility to spend however much you need up to your credit limit. This needs to be repaid within a predetermined term, but once you have repaid, you can continue using the line of credit.
  • Unsecured line of credit loans risk no collateral – as you do not need to secure an unsecured line of credit against an asset, you do not need to worry about losing a high-value item if you miss repayments. However, missing monthly repayments will affect your credit score and you may be charged extra fees.
  • Ideal for temporary cash flow issue – no matter what you need the money for, a line of credit can be ideal for those in an emergency financial situation, those with ideas for home renovations, or those who want to consolidate their debts.

The Disadvantages of an Open Line of Credit Loan

While there are advantages to line of credit loans online, there are also disadvantages to consider that may mean an alternative is more suitable for you:

  • Annual or monthly maintenance fees, regardless of use – some lenders may charge you maintenance fees to keep your line of credit active, regardless of how much you use it. This means that even if you have not used your line of credit in the first month or year, you may still be charged for maintenance.
  • Higher rates than fixed loans – line of credit loans can have higher rates than fixed loans because they are unsecured. However, some lenders may allow you to secure your line of credit against an asset to reduce the interest rate, but this proves a risk to your high-value item.
  • Typically requires a good credit score to qualify – many line of credit lenders may require a good credit score to approve an application. While there may be some that offer a line of credit loan for bad credit, you may need to consider other alternatives, such as using savings or personal borrowing.
  • Temptation to spend due to ease of access – as lines of credit function like a credit card, it is almost too easy to keep spending, which can land you in hot water if you go over your limit or do not have the funds to make repayments.

H2: Alternatives to Line of Credit Loans

A line of credit is not the only option when you need to borrow money quickly. Here are some other alternatives to consider:

Personal & Short Term Loans

If you are considering if it’s easier to get a personal loan or line of credit, it will depend on the lender and your credit rating. A personal loan can provide cash into your bank account for one time use, with a set repayment term and amount you want to borrow. However, it can be difficult to be approved when you have a poor credit history. A direct lender loan can provide short term cash with flexible repayments, even for those with a low credit score.


Consider whether the purchase is necessary at that time and whether it can wait. If so, you can try to save up the money needed, which allows you to avoid having to repay with interest. You can also look to see if you already have the funds available in your savings to cover part of the purchase before applying for credit.

Personal Borrowing

If you have trusted friends or family members that could help you with your financial issues or large purchase, personal borrowing is an option to explore. You can even make up a written agreement to confirm the terms and conditions.

Choose an Alternative to Line of Credit Loans Online

At QuidMarket, we do not offer unsecured line of credit loans, but we do offer short term, same day loans over a period of 3 – 6 months. You can choose a tailored repayment plan to suit your budget and needs too and get the approved cash the same day.

Our loans are designed to be used in an emergency or to cover any short term cash flow issues, so should not be used for any long term financial requirements. You can click apply now to start your application and get an instant decision when you need it, helping you resolve your situation quickly.

For more information, contact us at QuidMarket or for financial support, visit the Money Advice Service for free and impartial help.



There are many types of flexible loans available for applicants, so a line of credit agreement is not always the best choice. At QuidMarket, if you require borrowing to cover a short term expense, you can choose flexible repayments based on what you can afford. By using our loan calculator, you can determine how long and how much you want to borrow, adjusting if it isn’t affordable. This can be ideal for a short term expense, such as an unexpected repair bill and will provide structured repayments.

Depending on what you can afford to pay each month, having bad credit doesn’t mean you are not a suitable applicant. If you will struggle to maintain repayments, or you are not sure how much you can afford each month, using an unsecured line of credit loan may cost you much more overall. This is because the interest is charged as soon as you start using the limit. Whilst repayments can be very low, this will mean it will take much longer to settle.

At QuidMarket, we can help bad credit applicants if you can evidence that the loan repayments are affordable. You get to choose flexible terms and repay between 3 to 6 months, rather than an open-ended limit with no set repayments. This means you know exactly how much it will cost each month, how long it will take to settle and how much the interest charge will be.

If you continue to borrow month on month without repaying in full, the interest cost will potentially be high. If you only pay a small amount back each month, this will take longer to repay. If you would prefer to know how much the borrowing will cost you from the start, a short term loan may be the better option. A line of credit agreement can be good for those who can settle the balance each month, minimising the amount of interest being paid. If kept for the long term, this can cost much more.

Both a credit card and line of credit loan are similar in that you are given an agreed limit to spend up to. If you only pay the minimum repayment requested each month, it will take much longer to settle and will cost more in interest. Both do provide flexibility, however, you could borrow more overall than a fixed loan if you use it often. If you have a short term financial issue that requires quick funds, it could be a better option to choose a short term loan instead. This way you can borrow exactly what you need and settle within the repayment term, knowing exactly how much the interest charge will be from the start.

Warning: You should never pay upfront fees for a short term loan or send money in return for a short term loan. Late repayment can cause you serious money problems. For help, visit: www.moneyhelper.org.uk