   
|
|
|
|
Line Of Credit
|
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...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
|
|
