Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to
installment credit. Examples of revolving credits used by consumers include credit cards. Corporate revolving credit facilities are typically used to provide liquidity for a company's day-to-day operations.
* 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* The borrower makes payments based only on the amount they've actually used or withdrawn, plus interest.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 may repay over time (subject to any minimum payment requirement), or in full at any time.
* In some cases, the borrower is required to pay a fee to the lender for any money that is undrawn on the revolver; this is especially true of corporate bank loan revolving credit facilities.
Line of credit
loans, such as some home equity loans ( HELOC's)
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revolving credit — re·volv·ing credit n: a credit which may be used repeatedly up to the limit specified after partial or total repayments have been made Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. revolving credit … Law dictionary
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revolving credit — noun a consumer credit line that can be used up to a certain limit or paid down at any time • Syn: ↑open end credit, ↑charge account credit • Hypernyms: ↑consumer credit • Hyponyms: ↑credit account, ↑ … Useful english dictionary
revolving credit — Type of consumer credit arrangement which permits a buyer or a borrower to purchase goods or secure loans on a continuing basis so long as the outstanding balance of the account does not exceed a certain limit. Loans are repaid and new loans… … Black's law dictionary
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