A line of credit refers to a borrowing limit extended by a financial institution. Sometimes called a personal line of credit, bank line, or credit line. This kind of credit gives borrowers the flexibility of withdrawing funds on an as-needed basis so long as they do not exceed their limit. Typically, the lender will set minimum monthly payments and allow the borrower to pay the full outstanding balance at any time.
Generally, any fees or interest is accrued on the outstanding balance, and not on the total amount of their borrowing limit. Lenders may give the borrower checks, a debit card, or access to online transfers directly to a checking or savings account to conveniently withdraw funds