revolving credit

re·volv·ing credit

R0210600 (rĭ-vŏl′vĭng)n. Credit repeatedly available up to a specified amount as periodic repayments are made.

revolving credit

n (Banking & Finance) a letter of credit for a fixed sum, specifying that the beneficiary may make repeated use of the credit provided that the fixed sum is never exceeded

revolv′ing cred′it

n. credit automatically available up to a predetermined limit while payments are periodically made. [1915–20]

Thesaurus

Noun

revolving credit - a consumer credit line that can be used up to a certain limit or paid down at any timecharge account credit, open-end creditconsumer credit - a line of credit extended for personal or household usecharge account, credit account, open account - credit extended by a business to a customercharge card, charge plate, credit card, plastic - a card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered; "do you take plastic?"debit card - a card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank accountsmart card - a plastic card containing a microprocessor that enables the holder to perform operations requiring data that is stored in the microprocessor; typically used to perform financial transactionscheck overdraft credit, overdraft credit - credit provided by a bank in honoring a customer's overdrafts

Translations

Revolving credit

Line of Credit

An agreement between a bank and a company or an individual to provide a certain amount in loans on demand from the borrower. The borrower is under no obligation to actually take out a loan at any particular time, but may take part of the funds at any time over a period of several years. This agreement is fairly common in situations in which a business must make payroll but does not always have the operating income to do so, especially when its operating income is seasonal or otherwise varies from month to month. It is also called open-end credit or a revolving line of credit. See also: Credit Card.

Revolving credit.

A revolving credit arrangement allows you to borrow up to your credit limit without having to reapply each time you need cash. As you repay the money you have borrowed, it is available to be borrowed again.

For example, if you have a credit card with a credit limit of $1,500 and you make a purchase of $400, the amount of credit you have available is $1,100. But when you repay the $400, your credit limit goes back to $1,500 -- assuming you haven't charged anything else on the card.

At any given time, your balance due may fluctuate from zero to the maximum credit limit. If you don't use the credit line in any billing cycle, no fees apply in most cases. But if you have a balance due and don't repay the full amount, finance charges are added to your next bill.

Some revolving credit arrangements, such as a home equity line of credit, may have a predetermined end date, but the majority are open-ended as long as you make at least the minimum required payment on time.

revolving credit

Related to revolving credit: Revolving credit facility, Revolving line of credit

noun

Synonyms for revolving credit

noun a consumer credit line that can be used up to a certain limit or paid down at any time

Synonyms

charge account credit
open-end credit

Related Words

consumer credit
charge account
credit account
open account
charge card
charge plate
credit card
plastic
debit card
smart card
check overdraft credit
overdraft credit