The Difference Between a Line of Credit and a Credit Line

 
A line of credit is a type of credit where a bank is obliged to credit a client during a predefined period of time, either by allowing the customer to withdraw all of it at once or to make a number of small withdrawals. 
Although a line of credit is also sometimes called a credit line, the term "credit line" can be synonymous with "credit limit," and can also be used to define the maximum amount of credit that a financial institution will extend to a client, or the maximum amount that a credit card company will allow a cardholder to have on a single card.
 
The two concepts are highly interconnected and generally refer to the same sorts of agreements between financial institutions and their customers. A good example of both a line of credit and a credit line is a credit card. When you or your business is issued a credit card, you are extended a line of credit by the credit card company. This line of credit will have a credit line - or, more clearly, a credit limit. This will be the maximum amount of credit you are permitted to borrow from the institution. $500, $1500 or $10,000, for example, are common credit limits for personal and business lines of credit.
 
In most cases, the two terms can be used interchangeably. For example, you may refer to a credit card as a line of credit, or a credit line. Or you may refer to the maximum amount of credit unavailable on an account to a line of credit or a credit line. Although there can be minute differences between the two terms, they typically reference the same area of lending.