What is a Line of Credit?

A line of credit is a flexible type of loan that gives you access to a maximum amount of money (a limit) that you can borrow from, repay, and borrow again.

You don’t get all the money upfront like a traditional loan. Instead, you draw what you need, when you need it, and you’re only charged interest on the amount you actually use.

KOHO Line of Credit

If you like the idea of flexible borrowing without a lot of extra fees, the KOHO Line of Credit is built to be simple and transparent:

• Apply online for about $1,000–$15,000 in available credit

• Get interest rates as low as 19.9%

• Only pay interest on what you actually use, not on your full limit

• Avoid extra charges—no late, annual, or origination fees, just the interest on what you borrow

• Apply without a hard credit hit; checking if you qualify won’t impact your credit score.

How a Line of Credit Works (In Simple Terms)

1. You’re approved for a limit
   For example, you might be approved for a $5,000 line of credit.

2. You borrow only what you need
   If you use $1,000 of that limit, you’re only paying interest on that $1,000—not the full $5,000.

3. You make payments and free up room again
   As you repay what you borrowed, your available credit goes back up, so you can use it again later.

4. You can leave it at zero
   If you don’t use it, you don’t carry a balance and you don’t pay interest.

Think of it as a reusable loan that sits in the background until you need it.

When a Line of Credit Can Be Helpful

A line of credit can be useful when you:

• Have irregular expenses (car repairs, vet bills, travel, moving)

• Want a backup for short-term cash flow issues

• Don’t want to open a brand new loan every time something comes up

The key is to treat it as a tool for specific needs, not as extra spending money.