A credit line is a predetermined amount of money that a financial institution, like a bank, allows a borrower to access. This can be used for various purposes, such as covering unexpected expenses or making purchases. Borrowers can withdraw funds up to the limit set by the lender and are only charged interest on the amount they actually use. Credit lines can come in different forms, including credit cards and home equity lines of credit (HELOCs). They provide flexibility for managing finances, but it's important for borrowers to repay the borrowed amount on time to avoid high interest rates and potential damage to their credit score.