Credit
Revolving Credit
Revolving credit is a type of
credit that does not have a fixed number of payments, as
against installment credit. Typical
characteristics of revolving credit are:
o Payments are made by the borrower
based only on the amount they have actually used or withdrawn, plus
interest.
o The borrower may repay over time,
subject to any minimum payment requirement, or in full at any time.
o Use or withdrawal of funds up to a
pre-approved credit limit by the borrower.
o The amount of available credit
increases and decreases as funds are borrowed and subsequently repaid.
o The credit may be used
repeatedly.
