Revolving credit

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Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit.

[edit] Typical characteristics

• 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• The borrower makes payments based only on the amount they've actually used or withdrawn, plus interest.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.

[edit] Examples

• Credit card
• Line of credit
• Some loans, such as some home equity loans (HELOC's)

[edit] See also

• Installment credit