A line of credit is a term for the funds that a financial institution makes available to a consumer or business for use in a manner determined by the borrower. This form of credit offers a seemingly endless access to funding so long as the borrower continues to make payments to stay under the credit limit set by the lender. Often a line of credit can be increased after an extended period of on time payments and continuous use of the service.
Click for the full glossary of credit card terms.
Similar Articles:
- Revolving Line of Credit
- Funding
- Credit Inquiry
- Settlement
- Minimum Finance Charge
- Grace Period
- Qualifying Ratio
