In general, a line of credit is usually for a significant expense, while a credit card can be used for smaller expenses. Credit cards are easier to obtain and don’t require the paperwork a line of credit does. Both can be secured or unsecured, although credit cards that require collateral are only for people who are trying to build their credit. The two work similarly. You use the money you need when you need it and only pay interest on what you borrow. Usually, they are revolving, meaning as you pay them back, that money becomes available to borrow again. But there are differences: