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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Many founders turn to a line of credit to cover short-term expenses, purchase inventory, or manage receivable delays. William Jones, AZCentral.com, 28 Jan. 2026 For senior homeowners, a better option might be one tied to the property — like a home equity line of credit (HELOC) or reverse mortgage. Aly J Yale, CBS News, 26 Jan. 2026 The organization continued to operate on a line of credit with the hope that alternative grants would eventually provide reimbursement. Tamia Fowlkes, jsonline.com, 21 Jan. 2026 If seeking a line of credit, this may also be a great energy to find one. Kyle Thomas, PEOPLE, 18 Jan. 2026 See All Example Sentences for line of credit

Word History

First Known Use

1917, in the meaning defined above

Time Traveler
The first known use of line of credit was in 1917

Browse Nearby Words

Cite this Entry

“Line of credit.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/line%20of%20credit. Accessed 4 Feb. 2026.

Legal Definition

line of credit

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

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