The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit.Also like a loan, taking out, using, and repaying a line of credit can improve a borrower’s credit score. Unlike a loan, which generally is for a fixed amount for a fixed time with a prearranged repayment schedule, a line of credit has both more flexibility and, generally, a variable rate of interest