Library Line of Credit
Question
A school district public library would like to open up a line of credit so it can get a credit card. Is there a legal reason why this type of library - or, for that matter, any public library (association, school district, municipal, or Indian/Tribal) can only get a debit card and not a credit card? It is understood that best practice would involve a strong policy regarding its use.
Answer
A line of credit and a credit card are like a paint roller and a paint brush—they might perform the same basic function, but they work differently.
A line of credit or “revolving credit” gives a person or entity the ability to borrow money, without the borrowed money being tied to a particular purchase.