Credit Card Glossary: Terms and Definitions
Line of credit
A line of credit is an open-ended, revolving loan, in which the borrower may access money up to a certain limit, pay it back and borrow it again. Periodic interest charges will go up and down, depending on how much is borrowed. Lines of credit may be secured (as with home equity lines of credit) or unsecured (as with credit cards). Interest rates on lines of credit are usually variable.