Sometimes, when you apply for a loan, you have to disclose your intentions to the lending institution. This means that they may ask what your plans are for the loan proceeds. Whether you plan to go on vacation, consolidate credit cards, or remodel your home, the loan officer wants to know. Sometimes, your loan decision is based on what you plan to use the money for, just as much as your credit report and income are taken into consideration. A personal line of credit can be used for anything. The credit is extended to you based on your good credit only. Your plans for the money are not important, and they do not even have to be disclosed.