Revolving Credit
Credit that can be borrowed, repaid, and borrowed again up to a limit, with no fixed payoff date.
Credit cards are the everyday case, and the open-ended structure is what lets a small balance survive for years.
Often confused with
- Installment Loan
- An installment loan is borrowed once and paid down to zero; revolving credit can be reborrowed as it is repaid.
Taught in
See also
3.2.A.4