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Lines of Credit

A line of credit is a type of loan that allows a borrower to access a certain amount of credit. Unlike a traditional loan, a line of credit provides the borrower with the flexibility to use the funds as needed and only pay interest on the amount of credit actually used. Continue Reading Below

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Industry Studies

2026 Mortgage Industry Study Thumbnail

2026 Mortgage Industry Study

Andrew Latham

Encyclopedia Articles

Discover the definition of financial terms related to lines of credit.

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Learn About Lines of Credit

Thumbnail for Blog Article: How To Settle Credit Card Debt When a Lawsuit Has Been Filed

How To Settle Credit Card Debt When a Lawsuit Has Been Filed

David Hodges

Thumbnail for Blog Article: How to Use a HELOC on Investment Property

How to Use a HELOC on Investment Property

Benjamin Locke

Thumbnail for Blog Article: Best Personal Lines of Credit in 2026

Best Personal Lines of Credit in 2026

Sarah Cain

Thumbnail for Blog Article: Best Working Capital Loans in 2026

Best Working Capital Loans in 2026

Dustin Clendenen

Thumbnail for Blog Article: Best Small Business Loans for Good, Bad and Fair Credit 2026

Best Small Business Loans for Good, Bad and Fair Credit 2026

Jessica Walrack

Thumbnail for Blog Article: Best Business Lines of Credit for 2026

Best Business Lines of Credit for 2026

Julie Bawden-Davis

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About Lines of Credit

A line of credit is a type of loan that allows a borrower to access a certain amount of credit. Unlike a traditional loan, a line of credit provides the borrower with the flexibility to use the funds as needed and only pay interest on the amount of credit actually used. Lines of credit can be either secured, meaning they are backed by collateral, or unsecured, meaning they are not backed by collateral. They can also be either revocable, meaning the lender can cancel the line of credit at any time, or irrevocable, meaning the terms of the line of credit cannot be changed once it has been agreed upon. Lines of credit are often used to provide individuals and businesses with a source of financing for short-term expenses or to cover unexpected costs.