GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Credit Line


Synonyms:account, bank line, borrowed advance, extension, line of credit
Filed Under: financial-banking
Tags: banking, credit, line of credit
 

Definition of credit line

credit line
1. The maximum amount of money available in an open-end credit arrangement such as a credit card, or overdraft protection.

Related Terms and Acronyms:

  • borrow   To get a loan of money.
  • borrower   A person who borrows money or obtains a loan.
  • credit limit   The maximum amount of charges a cardholder may apply.
  • draw period   On a line of credit, the draw period is the fixed time when a borrower can make withdrawals from the account. After the draw period expires, the borrower can renew the credit line or may be required to pay the outstanding balance in full, or over time.
  • line of credit (LOC)   A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
  • over-the-limit fee   A fee charged for exceeding the credit limit on the card.

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