Definition of Revolving credit:
Revolving credit may take the form of credit cards or lines of credit. Revolving lines of credit can be taken out by corporations or individuals. It may be offered as a facility.
Revolving credit refers to a situation where credit replenishes up to the agreed upon threshold, known as the credit limit, as the customer pays off debt. It offers the customer access to money from a financial institution and allows the customer to use the funds when needed. It usually is used for operating purposes and the amount drawn can fluctuate each month depending on the customer's current cash flow needs.
Credit that is automatically renewed as debts are paid off.
A system where someone can borrow money at any time up to an agreed amount, and continue to borrow while still paying off the original loan.
How to use Revolving credit in a sentence?
- Banks are not allowed to provide revolving credit on their charge cards.
- Revolving lines of credit may be secured by a company's assets, in which case the bank has the ability to seize property if the debts are not paid in a timely manner.
- When the customer pays down an open balance on the revolving credit, that money is once again available for use.
- Revolving credit allows customers the flexibility to access money up to a predetermined limit, known as the credit limit.
Meaning of Revolving credit & Revolving credit Definition