A Line of Credit (LOC) is a revolving finance account, and works very similarly to a credit card. You determine the amount you would like to open the line with, and then may borrow up to that limit. You may continue to make withdrawals from the Line until the maximum is reached. Monthly payments are required as long as there is a balance withdrawn on the Line and payment amounts will change based on the amount outstanding. Once a portion of the balance has been paid off, it may be withdrawn again for use.
Lines of Credit are useful for borrowers who need to withdraw money frequently or over a longer period of time. They can be used to consolidate debt or fund ongoing projects.