How Long Does It Take To Get a Line of Credit Approved?

Written by True Tamplin, BSc, CEPF® | Reviewed by Editorial Team

Updated on December 27, 2022

How long it takes to get approved for a line of credit depends on what kind of line of credit it is.

For a regular credit card, often the individual will be approved in minutes.

This is due to the fact that approval is based on an algorithm and inputs from the user.

Home equity lines of credit, or HELOCs, are usually approved within 2 - 6 weeks.

A business line of credit can take anywhere between a few weeks to a few months.

This is due to the fact that business lines of credit are often "collateralized," meaning the loan is given to the business with the business's assets used as collateral.

Assigning the appropriate valuation to the assets and submitting proper documentation, such as tax returns, a balance sheet, and independent valuations of assets can take quite a bit of time.

In general, collateralized loans have a much lower interest rate than non-collateralized loans.

Read more below on what exactly a line of credit is:

Line of Credit FAQs

What is a line of credit?

A line of credit is money lent to an individual or business. If a line of credit is revolving, then the line of credit will replenish as the borrower pays back money borrowed.

What does LOC stand for?

The acronym LOC stands for Line of Credit.

What is a revolving line of credit?

A revolving line of credit is one which replenishes when the loan is paid off. An example of this is a credit card. A non-revolving line of credit closes once the loan is paid off, such as a student loan.

What's the difference between a line of credit and a loan?

A loan is typically a lump sum whereas a line of credit is typically revolving which allows for the borrower to draw, repay, and again draw as needed.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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