- The maximum amount of money available in an open-end credit arrangement such as a credit card, or overdraft protection.
borrowed advance, line of credit, bank line, account, extension
Related Terms and Acronyms
- Borrow — Definition,
- Sand, gravel or other material used for grading; a slope.
- To get a loan of money.
- Borrower — Definition,
- A person who borrows money or obtains a loan.
- Credit Limit — Definition,
- The maximum amount of charges a cardholder may apply.
- Draw Period — Definition,
- 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) — Acronym,
- 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 — Definition,
- A fee charged for exceeding the credit limit on the card.