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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.

What is a Home Equity Investment Agreement (HEA/HEI)? Thumbnail

What is a Home Equity Investment Agreement (HEA/HEI)?

Andrew Latham

What Is Invoice Factoring? How It Works and When to Use It Thumbnail

What Is Invoice Factoring? How It Works and When to Use It

Andrew Latham

What Is a Line of Credit? Types, Rates, and How to Use One Thumbnail

What Is a Line of Credit? Types, Rates, and How to Use One

Andrew Latham

Revolving Credit Explained: How It Works, Types, and Examples Thumbnail

Revolving Credit Explained: How It Works, Types, and Examples

SuperMoney Team

What Is a Small Business Loan? Types, Requirements, and How to Choose Thumbnail

What Is a Small Business Loan? Types, Requirements, and How to Choose

Andrew Latham

The Complete Guide to HELOCs: Everything You Need to Know About Home Equity Lines of Credit Thumbnail

The Complete Guide to HELOCs: Everything You Need to Know About Home Equity Lines of Credit

Jessica Walrack

Commercial Loans Explained: How They Work, Types, and Examples Thumbnail

Commercial Loans Explained: How They Work, Types, and Examples

SuperMoney Team

What is a Future Advance? Example & Implications Thumbnail

What is a Future Advance? Example & Implications

Alessandra Nicole

Evergreen Loans: Definition, Examples, and Financial Flexibility Thumbnail

Evergreen Loans: Definition, Examples, and Financial Flexibility

SuperMoney Team

Open-End Loans: Definition and Advantages Thumbnail

Open-End Loans: Definition and Advantages

SuperMoney Team

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Learn About Lines of Credit

Thumbnail for Blog Article: Home Equity Investment vs HELOC: Which Is Better for Accessing Your Equity?

Home Equity Investment vs HELOC: Which Is Better for Accessing Your Equity?

Andrew Latham

Thumbnail for Blog Article: Pros and Cons of a Home Equity Investment

Pros and Cons of a Home Equity Investment

Andrew Latham

Thumbnail for Blog Article: How to Finance a Business

How to Finance a Business

SuperMoney Team

Thumbnail for Blog Article: Best Loans for Real Estate Investors: Top Financing Options to Build Your Portfolio

Best Loans for Real Estate Investors: Top Financing Options to Build Your Portfolio

Andrew Latham

Thumbnail for Blog Article: How to Finance a Vacation Home (Updated 2026)

How to Finance a Vacation Home (Updated 2026)

Jessica Walrack

Thumbnail for Blog Article: How to Access Home Equity Without Refinancing: 5 Alternatives

How to Access Home Equity Without Refinancing: 5 Alternatives

Andrew Latham

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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.