Trending Now:
More Trending:
Love words? You must — there are over 200,000 words in our free online dictionary, but you are looking for one that’s only in the Merriam-Webster Unabridged Dictionary.
Start your free trial today and get unlimited access to America's largest dictionary, with:
Love words? You must — there are over 200,000 words in our free online dictionary, but you are looking for one that’s only in the Merriam-Webster Unabridged Dictionary.
Start your free trial today and get unlimited access to America's largest dictionary, with:
A line of credit (LOC) is an arranged amount of standing credit that a bank's customer may draw upon at any time.
A line of credit can also be referred to as revolving credit.
An LOC is a standing amount of money, similar to a loan, that a bank extends to a customer. A customer may draw upon the available line of credit, provided that the amount does not exceed the limit. Money borrowed on the line of credit must be paid back within a specified timeframe, at a specified interest rate. Unlike a loan, however, only the money actually drawn (or used) on a line of credit is charged interest. For instance, if someone has a $20k line of credit from his bank, but draws only $5k, he will be changed interest on only the $5k.
An LOC can be a convenient source of funds in an emergency. It is advisable to explore other borrowing options as lines of credit are unsecured, meaning that the interest rate charged varies with movements in banks rates. This can result in the borrower paying very high interest relative to the amount borrowed.
What made you want to look up loc? Please tell us where you read or heard it (including the quote, if possible).
Merriam-Webster's New Words Quiz—Fall 2017 Edition!
Test your visual vocabulary with our 10-question challenge!
TAKE THE QUIZTest Your Knowledge - and learn some interesting things along the way.
TAKE THE QUIZ
Writing? Check your grammar now!