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.