For a loan, a lender gives a borrower a set amount of money, and the borrower pays it back over time or all at once, plus interest. Credit refers to an amount of a lender’s money that a lender lets a client spend — say, with a credit card — with the understanding that the client will pay it back on time. If the client doesn’t, they’ll be charged interest. A “line of credit” is a loan that can be borrowed and paid off repeatedly without applying for a new loan each time. A credit card works similarly to a line of credit.