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Glossary: Line of credit

Line of credit is an arrangement between a financial institution and a customer. In other words these are the terms of a credit. They define a maximum loan balance that the borrower will be allowed to maintain.
The terms offered to a customer depend on many factor like, for example, his credit history.

How does it differ from a loan?

Usually there are several advantages over loans:

Terms, which can mean the same: tradeline, credit line, LOC

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