A line of credit is also referred to as a credit limit and is the amount a lender or credit card issuer allows you to spend. It is typically an amount of money that you have access to, that you can pay back in monthly payments or in full by a designated due date each month. If you aren’t sure what your line of credit is, you can check with your card issuer or lender.
Although both a credit card and a personal loan will extend a certain amount of credit, the terms are different. For instance, a personal loan is usually provided to you as a lump sum that you pay back based on the loan’s terms. A credit card line of credit is a specific amount that is available to you, that you can use as you need.