line of credit

noun phrase

: the maximum credit allowed a buyer or borrower

also : an agreement providing credit up to a certain amount

Examples of line of credit in a Sentence

Recent Examples on the Web

For example, a home equity loan or line of credit could help pay for a major home improvement project, while a car purchase could be financed with an auto loan rather than a large withdrawal from retirement savings. — Sarah Agostino, CNBC, 13 Nov. 2026

The Big 12 also joined forces with RedBird and private equity firm Weatherford Capital to stand up a line of credit that its schools could tap, though Sportico is unaware of any usage of that facility. — Justin Birnbaum, Sportico.com, 13 Nov. 2026

New Valley Bank & Trust won a judgement of $200,000 and another for a line of credit, bringing the total to $420,000, plus interest of about $52,000. — Pamela McLoughlin, Hartford Courant, 10 Nov. 2026

Acquiring banks extend to merchants what is essentially a short-term line of credit on every sale, floating the funds before the cardholder’s payment fully clears. — Dimitri Akhrin, Forbes.com, 6 Nov. 2026

Word History

First Known Use

1917, in the meaning defined above

Rhymes for line of credit

• accredit
• discredit
• noncredit
• dedit
• edit
• microcredit

Legal Definition

line of credit

: an agreement specifying the maximum amount of credit allowed a borrower