A Line of Credit is a special credit facility offered by banks, credit unions, and other financial institutions to private individuals or businesses. It enables borrowers to withdraw funds up to a predetermined maximum, referred to as the credit limit. The money you withdraw is paid back to the lender with interest.
As you pay off your debt, your credit may or may not be replenished, depending on whether you go for an open or closed line of credit (but more on that later).
First, let’s get one thing straight…
Why Do I Need a LoC Tracker
This live, premade Excel Sheet is a true lifesaver when it comes to managing your credit accounts, personal or business. Track your current balance, payments, and interest rate with magical ease in real time. By pre-automating basic calculations for you, we help you stay on top of your credit score so you can improve that number all year long.
You can also make adjustments when needed, such as handling changes in interest rates over time.
Disclaimer: This template is not programmed to handle non-revolving lines of credit, where your available credit doesn’t go back up once you repay the debt.
Is a Line of Credit the same thing as a Credit Card?
While both are forms of revolving credit – that is, you can borrow repeatedly up to a set limit as you repay, there’s one key distinction to keep in mind:
A line of credit functions mainly as a bank account, which you can access through an ATM, check, or e-transfer as and when you like.
A credit card, on the other hand, functions primarily as a payment tool — allowing you to make purchases in-person or online, with funds accessible to you directly through the card.
Example
If you have a $50,000 credit line and borrow $20,000, you’ll still have $30,000 available. With a revolving credit, paying off the $20,000 balance will restore the full $50,000 limit.
Below, I highlight some key differences between a line of credit a credit card, to help you decide what suits you best:
| Line of Credit | Credit Card |
|---|---|
| Cash-based borrowing account | Payment card for purchases |
| Relatively lower interest rate | Relatively higher interest rate |
| Higher credit limit | Lower credit limit |
| Interest is charged on the amount used | Interest charged on unpaid balance |
| Usually, no rewards | Rewards, points or miles awarded on use |
Pro Tip for Borrowers
Choosing between a credit card and a line of credit depends on your financial needs. For everyday purchases, a credit card may be the better option. But if you need access to funds for larger expenses or commercial, a line of credit is often preferred due to its relatively lower interest rates and flexible repayment terms.
Take a good look at your financial situation and spending style before choosing one over the other.
Once you decide in favour of LoCs, you’ll first need to decide if you want a…
Secured or an Unsecured Line of Credit?
Unlike credit cards, which are almost always unsecured, a line of credit may or may not require collateral, depending on your financial goals and needs.
The difference being…
A secured LoC is backed up by collateral, say, a house or a car. If you ever default on your credit limit, the lender has the right to take possession of the collateral and use its value to recover the outstanding balance.
In contrast, an unsecured line of credit does not require collateral to be approved. Approval depends on how creditworthy you are, how much you earn, and whether you have any positive credit history with the lender.
Applying for a line of credit, personal or business?
If that’s a yes, the first thing you need to do is check your credit score. This number tells lenders how dependable you are as a borrower. Scores generally fall between 300 and 850. The higher your score, the lower your interest rates will be!
How Our Template Works
At WordLayout, we have developed the ultimate loan trackers to help you stay on top of your finances! Browse through our growing collection of loan-calculating templates to find one that works best for you. To start analyzing your own data, simply replace the sample data with your actual data – and you’re good to go!
Users can also change the formatting, add or remove columns, create new charts and graphs, or customize the layout & design to match their individual needs & preferences.
All cells showing automatically calculated values have been locked to ensure their specific functionalities and formulae are protected.
Template Essentials
Here’s everything you can do using our premade, professionally designed credit tracker:
- Get a quick visual snapshot of your line of credit activity
- Create & maintain a live transaction log with each draw, repayment, and interest charge recorded in list-view
- Track your credit limit by reviewing your credit balance after withdrawals and repayments
- Quickly gauge interest based on daily rates while clearly distinguishing between interest accrued and interest paid
- Be alerted if you exceed limits (which could potentially trigger financial or legal penalties)
- Record & document financial information to help with business audits, expense management, and tax reporting (for business LoCs)
Unpacking The Maths
The best part about using our loan trackers is that you never have to get your hands dirty doing hefty calculations! That’s right, we do the maths for you – so you don’t have to!
Here’s a quick look at the formulas we use to calculate interest on each withdrawal and payment.
Based on the interest rate you manually specify for each withdrawal or repayment, we calculate a daily interest rate (or DIR) using this formula…
Daily Interest Rate = Annual Interest Rate (Column C) X Amount of Money Withdrawn X No. of Days the Interest Accrues on the Given Amount
For example, if you withdrew $5,000 at 10% annual interest and kept it for 15 days, the daily interest formula shows you would owe about $20.55 in interest for that period.
Key Benefits of a Line of Credit
Now, you’re probably wondering, what’s so great about opening a line of credit, and not just applying for a credit card or taking out a loan. Turns out, there are several reasons why LoCs are a more attractive option for private and commercial borrowers!
For example, LoCs offer:
- More Flexibility – Borrow only what you need, when you need it
- Lower interest rates – Often cheaper than credit cards, especially secured LOCs
- Emergency safety net – Quick access to funds for unexpected expenses or cashflow gaps
- Better credit profile – Responsible use may help build or strengthen credit scores over time
- Overdraft Protections – If linked to your checking account, you can spend more money than you have in your account, as funds are pulled from your LoC to cover the shortfall.
- Pay interest only on what you use – Unlike a loan, you’re only charged interest on what you withdraw
Key Template Features
- Built-in mathematical formulae & calculations using basic data manually put in by the user.
- Dedicated space to add the lender’s information, ensuring proper documentation
- Visual charts showing the amount borrowed against the total interest paid.
- No Macros Required – Fully formula-based for easy customization and safety.
- Printable Report – Clean, ready-to-print layout for record-keeping or client sharing
How To Track Multiple Lines of Credit Using Our Template?
Track multiple lines of credit by creating as many spreadsheets as possible. To do this, duplicate the main sheet by clicking on the ‘Select All Button at the corner (that’s the little square Column A and Row 1). If you only copy and paste select cells, you will only duplicate the text and formatting, NOT the formulae we have programmed into them.
Rounding On/Off Option for Users
For simplicity and consistency, monthly payments are rounded to two decimal places.
You can disable rounding if you prefer more exact figures. Keep in mind that rounding can create a small discrepancy — by slightly understating the interest or overstating the principal, or the other way around.
Our Template is a Quick & Handy Resource for…
- Private borrowers & lenders
- Banks & credit unions
- Financial planners & accountants
- Business users
You Might Also Be Interested in…
- Home Equity Line of Credit Tracker
- Simple Interest Rate Calculator
- Compound Interest Calculator
- Interest-Only Loan Calculator
- Loan Amortization Template
Final Thoughts
Whether you are looking for a simple tool to track your household credit activity or a more in-depth look at how much interest your company has accrued with each payment you draw, you need this simple but effective Excel tracking tool to help you take charge of your life finances or business trajectories in positive ways.
To sum up, while a line of credit is great for flexibility, emergencies, or managing cash flow, it requires discipline. It’s not ideal if you need a fixed repayment plan or if you struggle with overspending.
Download our FREE Line of Credit Tracker NOW to stay motivated to pay off your line of credit & generally be in control of what is going on with your account.
Our editable template can be instantly accessed in .xlsx, .xltx, and .ods formats.
Template Disclaimer
Be aware that spreadsheets are somewhat prone to error. Even if the spreadsheet is completely free of errors at the time you download it, there is always a possibility that you might accidentally introduce errors as you edit it. That’s why we would recommend using this line of credit tracking template only if you are comfortable using Excel and can identify and fix errors that may be introduced. With that said, download and enjoy!
