Investor Glossary-line of creditInvestor Glossary-line of creditInvestor Glossary-line of creditInvestor Glossary-line of creditInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Line Of Credit

The HTML to link to this page
 

A line of credit, also called a credit line, is an arrangement between a bank or vendor and its customer that extends a certain amount of unsecured credit to that customer. A line of credit represents the maximum amount that the customer is allowed to borrow and owe. It acts as a loan, but, unlike a loan, a line of credit usually doesn't require you to pay interest on the credit you don't use. A line of credit is usually more fitting as a short-term loan than a long-term solution. Credit programs use a line of credit as a factor in their approval process; for this reason, borrowers might want to treat their line of credit as more than a mere guideline. Used wisely, a line of credit can help one's financial growth, personally or professionally.



Rate this line of credit definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 1035 exchange, phantom income, command economy, diluted share, LIBOR, per diem, ex-dividend date, debt service coverage, cancelled check, Zero Cost Collar, dividends payable, implied volatility, 1031 exchange, labor relations, 144a, covered put, irrevocable trust, class C shares, quality assurance, liquidity ratio, annual return, deferred tax, margin rate, reverse mortgage, deferred revenue, inflation, stock market close, limit order, retained earnings, VIX, current ratio, FTSE, Key Rate Duration, balance sheet, APR, required rate of return, stock split, FICO score, 401a, minority interest, open position, real GDP, option premium, wholly-owned subsidiary, risk management, ex-dividend, in escrow, average price per share, EBITDA


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use