Banking Q&A: What is a line of credit? by Blake Pokley - September 11, 2020September 22, 2020 A line of credit is an amount of money that can be borrowed. There is usually a set credit limit that cannot be exceeded. Real-life Application:Person A has a line of credit through their credit union with a limit of $3,000. They have a current balance of $500 on it, so they have $2,500 left on it they can borrow.