A line of credit is different from a loan in that a loan is a fixed sum of money repaid over a fixed term (period of time), and a line of credit is a revolving account a creditor can borrow against, withdrawing funds up to the maximum amount of the line of credit, and paying-down the line of credit at any time, with the balance fluctuating over time. Thus, a line of credit is more similar to a credit card account, but is usually provided by a local bank based on the debtor’s personal or business relationship with the bank.

In Idaho, as in other states, a line of credit and a loan are distinct financial products. A loan in Idaho is a specific amount of money borrowed that must be repaid over a predetermined period, often with interest, according to the terms of the loan agreement. In contrast, a line of credit is a flexible borrowing option that allows the borrower to draw funds up to a certain limit, repay them, and borrow again as needed. The balance of a line of credit can go up or down over time, depending on the borrower's withdrawals and payments. This financial arrangement is indeed akin to a credit card account but is typically offered by banks and may be secured or unsecured, based on the borrower's relationship with the bank and their creditworthiness. The terms of both loans and lines of credit in Idaho are governed by state statutes, including the Idaho Credit Code (Title 28, Chapter 41-46 of the Idaho Code), and federal laws such as the Truth in Lending Act (TILA), which requires lenders to disclose credit terms to consumers in a clear manner.