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Line of Credit Alternatives

  • You could consider a credit card instead
  • Guaranteed credit limit
  • Check your eligibility with no impact to your credit score
Check my eligibility This won't affect your credit score

Representative example: Amount of credit £1,200. Interest rate: 49.0% pa (variable) Representative 49.0% APR (variable)

What is a line of credit and how does it work?

A line of credit is where you have access to a certain amount of borrowed money, up to a set limit. You can use it to make payments, withdrawals and purchases and you are typically charged interest on any funds that you use.

Most lines of credit are open-ended, which means you can continue to use it indefinitely, as long as you keep up with the minimum monthly repayments that have been set by the lender. Here’s an example to show you how it works:

  • You take out a line of credit with a £1,000 limit
  • You use £400 of that to pay for a major expense, such as to fix a broken boiler
  • Your lender charges you interest on that £400
  • You cannot afford to pay all of that back in one go, so you repay some of the money, plus the interest, and now you only owe £200
  • Your available credit is now £800
  • From there, you can choose to pay off what you owe or continue to use the line of credit for further expenses, depending on your needs.


Apply for a credit card from 118 118 Money with confidence
Use our eligibility check to find out what credit limit we’ll offer you before you apply, without affecting your credit rating!
Check my eligibility This won't affect your credit score
Is the 118 118 Simple Interest Rate Money Credit Card an alternative to line of credit?

Dependent on factors like your own personal circumstances, credit history and the purpose for which you require credit for, a credit card can be an alternative in certain scenarios. Both credit cards and lines of credit are open-ended, meaning they are revolving lines of credit and both similar in this context. Unlike personal loans, which are for a lump sum. Make sure you do your own research before deciding on what option is right for you.

If you’re considering the 118 118 Money Simple Interest Rate Credit Card, it makes sense that you’d want to know what some of the features of our card are.

A credit limit of up to £1,200.

Flexibility to repay in full or in instalments, whichever suits you. There will always be a minimum monthly repayment and we recommend paying off more than this if you can.

Up to 51 days interest-free on withdrawals and purchases when you repay your balance in full each month.

You can complete an application online.

The ability to check if you’re eligible before you apply, without affecting your credit score.

We have outlined some of the ways in which lines of credit can differ from credit cards and loans below.


Want to apply for a credit card?

  • Alternative to lines of credit
  • Check your eligibility with no impact on your credit score

Line of credit vs credit cards

Credit cards and lines of credit work in much the same way, but there are some key differences that you ought to be aware of too. We’ve broken down the details below, to help you understand:


The similarities between a line of credit and a credit card

  • They are both an open-ended, revolving form of credit.
  • You will be able to borrow within a set credit limit.
  • You repay via monthly instalments, as long as you meet the minimum amount set by the lender.
  • You only pay interest on the money you use.


The differences between a line of credit and a credit card

  • Interest rates are typically higher on a credit card.
  • Credit cards can be more accessible if you have a less-than-perfect credit history.
  • Some credit cards can come with rewards, interest-free periods or cashback, other lines of credit don’t typically have such incentives.

How is a line of credit different to a loan?

With a loan, you are borrowing an amount of money over a fixed period of time. Once that term comes to an end, you are required to have paid off the loan plus any interest, in full. That interest is charged on the full amount, regardless of whether you actually used all of the money that you borrowed.

In contrast, a line of credit is a form of revolving credit that you can continue to use over an indefinite period of time, as long as you’re not exceeding the credit limit. It means you can keep the line of credit open, provided you are meeting the minimum monthly repayments. And you are only charged interest on the money you use, not the full credit limit.

Is a line of credit right for me?

It doesn’t matter if it’s a line of credit, a loan, a credit card or any other financial product, it’s vital that you do your homework. You need to be sure that the choice you’re making is right for you and that it suits your personal circumstances.

You need to ask yourself how much you need to borrow and whether you can afford the monthly repayments, including the interest that will be added. How long do you need to borrow for? Is a short term line of credit going to be the answer, or do you want to look at longer-term options? If you need some help, our money guidance section is a good place to start, as are our tips on borrowing.

Loans are very different to lines of credit. But what about the 118 118 Money Simple Interest Rate Credit Card? If you need a line of credit, it works in a very similar way and it could prove the perfect alternative.

Am I eligible for a 118 118 Money Simple Interest Rate Credit Card?

If you think a credit card might suit your situation more than a line of credit loan, it’s worth checking your eligibility with us before you apply. It takes just a few moments, is free of charge, and won’t make any difference to your credit score. To qualify for our credit card you’ll need to:

  • Be a UK resident
  • Be aged between 18 and 70
  • Earn at least £8,400 a year
  • Not be in arrears with another lender
  • Have had no default payments in the past six months

When using our credit card eligibility checker, we’ll also need to know your:

  • Name
  • Email address
  • Date of birth
  • Current employment and residential status
  • Net monthly income
  • Outgoings
  • Home address

Will you do a credit check on me?

Yes. Whenever you apply for a loan, credit card or line of credit in the UK, your lender will carry out a credit check on you. It’s a standard part of the application review process, but we’ll also look at publicly available information – such as whether you have any CCJs or whether you’re on the electoral register.

It could be worth checking your credit report before you start, and don’t forget you can always use our eligibility tool, which has no bearing on your score.

Will my credit score be affected when I apply?

It’s true that applying for a line of credit, a loan or a credit card can affect your score, but the impact should be minimal. A problem will be more likely if you submit lots of applications in a short period of time, as each full application leaves a mark on your credit file.

On the other hand, if you’re approved, you can show to lenders that you can be trusted. To do this, you need to make your repayments in full and on time every month. This can work in your favour and actually improve your score.

I have questions. How do I get in touch?

If you want to know more about a line of credit loan or whether a 118 118 Money Credit Card might be a better choice, we encourage you to contact us.

You can call our Customer Services team on 02920 548 118. Lines are open 8am-7pm Monday to Friday and 9am-5pm on weekends and Bank Holidays.

Alternatively you can use our web or app chat too.

Apply for a line of credit alternative from 118 118 Money

Want to apply for a credit card with 118 118 Money? You can try our eligibility check first to see if you’ll be accepted before you apply – and it won’t affect your credit rating.

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Line of Credit FAQs

There are lots of lenders who provide online personal lines of credit in the UK. We do not offer lines of credit to our customers, but our credit card works in much the same way. Like a line of credit, it is an open-ended, revolving form of credit with a set limit – in our case up to £1,200. The representative APR is 49.0%.

There are any number of reasons why you might want to apply for a long or short term line of credit. For example, you could use the money for:

  • Holidays
  • Major projects, including home improvements
  • Seeing you through to payday
  • Unforeseen expenses, such as car repairs
  • Debt consolidation

Typically speaking, if you have a poor credit history, you might find it harder to get approved for a line of credit. But that doesn’t have to mean you’re out of options.

We want to help as many people as we reasonably can, which is why we consider applications for our credit cards for bad credit. We can never guarantee you’ll be approved before we know all the details, but rest assured we’ll look at more than just your credit score when you apply.

If you are unsuccessful but then your financial situation improves, we welcome you to re-apply after 180 days. Remember, lots of applications in a short period of time can have a negative impact on your credit score, so we strongly advise against that.

If your application for a 118 118 Money Credit Card is accepted, you can expect to receive your card and your PIN through the post within 10 days. For security reasons, these will arrive separately.


Ready to apply for a credit card from 118 118 Money?

You can try our eligibility check first to see if you’ll be accepted before you apply – and it won’t affect your credit rating.