revolving credit facilities extended to individuals which may be secured (collateralized) or unsecured. The maximum borrowing limit on an unsecured personal line of credit is determined based on the credit worthiness of the individual borrower. The maximum borrowing limit on a secured personal line of credit also accounts for credit worthiness, but is typically based on a fixed percentage of the assessed value of the underlying collateral. Once a maximum loan balance is established, the individual may draw on the line of credit at his or her discretion. Interest is charged for utilized balances using a predetermined, variable rate of interest.