What is an open credit plan most commonly referred to as?

An open credit plan is most commonly referred to as a line of credit because it provides borrowers with a maximum borrowing limit and the ability to withdraw funds as needed. Borrowers can access and utilize the funds multiple times, as long as they do not exceed the agreed-upon credit limit. This flexibility makes it distinct from other types of loans, as borrowers can repay and then borrow again without needing to reapply, which adds to its convenience.

In contrast to a line of credit, a personal loan typically provides a lump sum amount that must be repaid in fixed installments over a specified period, without the ability to re-borrow once it's paid off. A mortgage is a specific type of loan used to purchase real estate, typically secured by the property itself, while a secured loan involves borrowing against collateral, which reduces risk for the lender but doesn't offer the same fluid borrowing capability that an open credit plan does.