Whether you're looking for some money to live on while you study at university or are hoping to get some Toronto breast implants, everyone could use a little extra money at some time in their lives. While student loans, car loans, and mortgages take care of the big things and credit cards can look after little temporary borrowing needs, what about those middle of the road loan amounts? For these, you would normally look to a line of credit. Read on to find out more about what lines of credit are and where you can apply for one.

A line of credit is a special type of loan offered by banks to people and businesses who need to be able to borrow at a moment's notice. Unlike a lump sum loan like you would get to buy a car or a house, where you withdraw a specified amount all at once and repay it on a schedule, a line of credit is an available loan amount that can be drawn upon and repaid any time. It's not usually enough to buy a house, but you can probably buy a Group of Seven painting on your line of credit.

When you have a line of credit, your bank approves you to borrow up to a certain amount based on your credit rating and credit history. For those with poor credit, only a small amount may be approved. When you need to furnish your Toronto lofts for sale, you can borrow up to that amount only. You only pay interest on the amount you have borrowed. Some lines of credit require you to pay an annual fee on any unused portion of your line of credit in order to make sure it will still be available to you.

Not everyone can get a line of credit. Most lines of credit require you to put up collateral against the loan, so if you don't own a car or any Toronto condos or any business assets, you might not be able to secure one. Likewise, banks want to see that you have a good credit history and a good credit rating before they will extend you a line of credit. Though there are some banks that will offer unsecured, no-qualifications lines of credit, these usually come with very high interest rates.

Individuals, businesses, and even governments can all apply for lines of credit. To do so, simply make an appointment with the loan officer at your bank. You can pre-check to see if you qualify and compare interest rates by checking out the competing banks in your area like you would when buying condos for sale in Toronto. One bank may give you a better rate than another.