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

She was forced to take out a second line of credit — a home-equity loan, or second mortgage — which cost another $700 per month. — Santul Nerkar, New York Times, 20 July 2026

New American Funding is a great option for those looking for speedy application and funding, a smaller line of credit and those who don't mind withdrawing the full line upon opening. — Kelsey Neubauer, CNBC, 16 July 2026

Ask your accountant when to use the fund, when to cut back on owner distributions (profit taking), and when a line of credit or loan is preferable. — Rob Falzon, Forbes.com, 25 June 2026

Instead of getting a lump sum, a HELOC offers a revolving line of credit that can be used as needed during a borrowing period, usually five to 10 years. — Kevin Cerveny, Kansas City Star, 15 June 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