What type of card allows you to borrow funds against a line of credit?

A credit card allows you to borrow funds against a line of credit, which means you can use it to make purchases or withdraw cash up to a specified credit limit set by the lender. This line of credit is established based on your creditworthiness and ability to repay. The key characteristic of credit cards is that they enable you to incur debt up to a maximum amount, which you can later repay, typically requiring minimum monthly payments.

In contrast, other types of cards operate differently. A bank card often refers to a debit card linked directly to a checking account, allowing you to spend only what you have available. Prepaid cards require you to load funds onto the card in advance, and you can only spend the amount that has been preloaded. Debit cards also draw directly from your bank account without the option to borrow funds, as does a prepaid card. Therefore, a credit card is distinctly positioned in that it provides access to borrowed funds, making it the correct answer.