Credit Card Glossary
Revolving Credit
Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit. Typical characteristics of revolving credit include -
• The borrower may use or withdraw funds up to a pre-approved credit limit.
• The amount of available credit decreases and increases as funds are borrowed and then repaid.
• The credit may be used repeatedly.
• The borrower makes payments based only on the amount they’ve actually used or withdrawn, plus interest.
• The borrower has the choice of repaying the balance over time (subject to any minimum payment requirement), or in full at any time.