A Line of Credit operates in a similar way to a credit card: only pay for what you USE and for however LONG you require it. DO NOT pay for money that you aren’t using!
You, the borrower, are approved for a maximum loan balance that a lender allows you to borrow against. You can access a portion of the line of credit at any time, on condition that you do not exceed the approved amount set forth in the agreement and also satisfy any other requirements, such as making required periodic payments.
Credit lines are most ideal for those borrowers whose financing needs vary.