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 Wyoming, as in other states, a line of credit and a loan are distinct financial products. A loan in Wyoming is a fixed amount of money that is borrowed and must be repaid over a set 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 similar to a credit card but is typically offered by local banks and may be based on personal or business relationships. Wyoming state statutes and federal laws regulate both loans and lines of credit, ensuring that lenders provide clear terms and adhere to lending practices that protect consumers and businesses. These regulations include disclosure requirements under the Truth in Lending Act (TILA) at the federal level and state-specific statutes that govern the lending practices of financial institutions operating within Wyoming.