revolving credit
Perpetual loan arrangement
Revolving credit is a borrowing arrangement where the borrower can repeatedly draw funds up to a set limit, repay, and borrow again.
Credit cards are the most common example: She put the purchase on her card and paid it off over three months.
Unlike installment loans with fixed payments, revolving credit remains available as long as the account stays open and in good standing.
Steadiness or amount owed
- repaymentGiving back what's owed
- minimum paymentLowest acceptable installment amount
- billing cycleRecurring invoicing timeframe
- statementExpressed claim or fact
grace period · interest rate · outstanding balance · payment due · cash advance · balance transfer · draw down · paydown
Borrowed money repaid later
- lenderOne who loans money
- borrowerOne who takes temporarily
- debtorOne who owes
- creditworthinessAbility to repay debts
interest · principal · collateral · default · risk · unsecured · debt · liability
Cost of borrowing money
- annual feeRecurring yearly charge
- finance chargesCost of borrowing money
- late feePenalty for overdue payment
- variable rateAmount that fluctuates
APR · cash advance fee · balance transfer fee · accrued interest · service charge
Spending past zero
- home equity lineLoan using house value
- store cardRetailer-issued payment account
- charge cardFull-balance payment plastic
- business lineSpecific commercial offering area
margin account · overdraft protection · secured card · HELOC
balance
Steadiness or amount owed
- repaymentGiving back what's owed
- minimum paymentLowest acceptable installment amount
- billing cycleRecurring invoicing timeframe
statement · grace period · interest rate · outstanding balance · payment due · cash advance · balance transfer · draw down · paydown · open-ended
loan
Borrowed money repaid later
creditworthiness · interest · principal · collateral · default · risk · unsecured · debt · liability · obligation
interest rate
Cost of borrowing money
- annual feeRecurring yearly charge
- finance chargesCost of borrowing money
- late feePenalty for overdue payment
variable rate · APR · cash advance fee · balance transfer fee · accrued interest · service charge
overdraft
Spending past zero
- home equity lineLoan using house value
- store cardRetailer-issued payment account
- charge cardFull-balance payment plastic
business line · margin account · overdraft protection · secured card · HELOC
- credit cardsloyalty card, cardholder, cashback offers, card number, rewards card
- creditcreditworthiness, creditors, creditworthy, FICO, FICO score
- lendingloans, borrower, approval, lenders, bank loan
- business debtbank loan, commercial loan, loan, secured loan, term loan
- Consumer Creditinterest rates, personal loans, installment loans, secured loans, unsecured loans
- credit scoresFICO score, creditworthiness, payment history, FICO, Equifax
revolving creditinstallment loan
Debt repaid in portions
term loan · installment credit · mortgage · auto loan · personal loan
credit, revolve, discredit, revolver, revolving, credited, revolved, accredit, creditor