Line of Credit vs Credit Card

At Abound, we offer both Lines of Credit and Abound Visa® Credit Cards. Both are revolving credit accounts that provide flexible borrowing options, but how you access and use them differs.

Line of Credit

A Line of Credit is a flexible, revolving credit account that lets you borrow up to a set limit and make repayments as needed. At Abound, our Lines of Credit are good for three years, after which they are reviewed and may be adjusted. You can easily transfer funds from your Line of Credit into your Abound Account through Digital Banking¹ or access your funds at your nearest branch.

It’s a great way to build or establish credit and can be used for almost any purpose. Use the funds for medical expenses, home renovations, college costs and more—it’s there to cover your needs. You can also link your Line of Credit to your Abound Free Checking Account² for overdraft protection.

Credit Card

Credit Cards are another form of revolving credit that offers access to funds through a physical card. When managed responsibly, they’re a great tool for building or establishing credit and provide a safety net in emergency situations. At Abound, we offer two credit cards: the Abound Visa® Platinum and Visa® Classic. Our Credit Cards feature low interest rates, no balance transfer fees and low cash advance fees.

With our cards, you’ll receive a statement at the end of each billing cycle showing your full balance, minimum payment due and transaction history. You can also check your balance and make payments through Digital Banking or at any branch location. Use your Credit Card for everyday purchases or to cover unexpected expenses while staying aligned with your budget. They allow you to buy what you need and save as you go.

What are the key differences?

1. Accessibility and use – With a Line of Credit, you access funds by transferring money into your Abound Account from your Line of Credit through Digital Banking or by visiting a branch. With a Credit Card, you access your credit line by swiping or tapping your physical card or using a digital wallet.
2. Credit limit – Lines of Credit and Credit Cards can have different credit limits, which is the maximum amount you’re allowed to borrow. Your credit limit depends on multiple factors such as your credit score, income and credit history. Our Line of Credit offers limits up to $25,000, while our Credit Card limit is up to $35,000.
3. Rates – Lines of Credit and Credit Cards usually have different interest rates. Typically, Lines of Credit offer a lower rate than Credit Cards, but that’s not always the case. Your rate is determined by your creditworthiness. You can view our current rates here.
4. Rewards – Credit Cards often offer rewards programs, such as cash back, which Lines of Credit do not. For example, our Abound Visa® Platinum offers 5% cash back on gas purchases at the pump and 1% on all other purchases³.

Lines of Credit and Credit Cards both provide spending flexibility and help build credit, but each product has unique features that may suit different needs. Not sure which is best for you? Visit your local branch today! Our team is here to help you find the right fit.