A line of credit is a type of loan that allows the borrower to draw money as needed, up to a maximum amount, with interest paid on the amount borrowed. Lines of credit are often used by businesses to fund short-term expenses, similar to how an individual uses a credit card.
- Credit in China: A Culture of Consumer Spending?Since being introduced in 1985, the number of credit cards issued in China has grown at an astonishing rate, reaching 285 million in 2011, five times the number in 2006. MasterCard projects that annual credit card spending in China will more than double by 2025, and over the next decade, the country is expected to become the largest credit card market in the world by number of issued cards, overtaking the United States. This article, written by William Hart, Thomas Kidd, Lane Rettig and Nicholas Walker, members of the Lauder Class of 2014, takes a look at consumer credit in China.