Revolving Credit

Business / Taxes / 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.

Other Words for Credit

Credit Noun Synonyms: belief, faith, trust, credence
Credit Verb Synonyms: ascribe, acknowledge, attribute, assign, impute
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Line Of Credit

Business / Finance / Line Of Credit: The amount of short-term credit available to a business from banks. MORE

Credit Line

Business / Taxes / Credit Line: A credit line, or line of credit, is a revolving credit agreement that allows you to write checks or make cash withdrawals of amounts up to your credit limit. When you use the credit — sometimes cal MORE

Credit Limit

Business / Taxes / Credit Limit: A credit limit, also known as a credit line, is the maximum amount of money you can borrow under a revolving credit agreement. For instance, if you have a credit card with a credit limit of $3,000, an MORE

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