Definition of Revolving account:
Charge or credit account that does not have to be paid in full (reduced to a zero balance) before obtaining goods or services against the available credit limit.
A revolving account gives a borrower flexibility to have an open credit line up to a maximum specified limit. Borrowers have the option to apply for revolving or non-revolving credit. Revolving credit is associated with accounts that have a revolving balance. Credit cards, banking account lines of credit, and home equity lines of credit are some of the most common revolving accounts.
A revolving account is a type of credit account that provides a borrower with a maximum limit and allows for varying credit availability. Revolving accounts do not have a specified maturity date and can remain open as long as a borrower remains in good standing with the creditor.
How to use Revolving account in a sentence?
- These types of accounts provide more flexibility with an open line of credit up to a credit cap.
- Revolving lines are usually credit cards or home equity lines while non-revolving are often car loans or mortgages.
- A revolving account provides a credit limit to borrow against.
Meaning of Revolving account & Revolving account Definition