which loan type allows you borrow up to the c...

The loan type that lets you borrow “up to a certain credit limit ” (and then re-borrow as you repay) is a revolving line of credit , not a traditional installment loan like a standard personal loan or auto loan.

Quick Scoop

• A line of credit gives you a maximum approved limit and you can borrow, repay, and borrow again up to that limit as needed.

• You pay interest only on the amount you actually use, not on the entire limit.

• It works similarly to a credit card but often with lower interest rates and more flexible uses (e.g., emergencies, home projects, cash needs).

If your question is from a quiz like “Which loan type allows you to borrow up to the credit limit as needed?”, the intended answer is: line of credit.