Define: Revolving Credit

UK Accounting Glossary

Definition: Revolving Credit



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Full Definition of Revolving Credit


Revolving credit can be any of the following:

  • A credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card. As credit is paid off, it becomes available again to use for another purchase or cash advance.
  • A line of credit that may be used repeatedly up to a specified total, with periodic full or partial repayment.
  • A type of credit which allows a borrower to withdraw funds up to a preapproved credit limit. Credit cards are most often the type of revolving credit borrowers use. Borrowers make payments based only on the amount they’ve actually charged to their revolving account/credit card, plus interest.
  • Typical of a line of credit or credit card in which the amount of available credit increases and decreases as funds are borrowed and then repaid.
  • A consumer credit line that can be used up to a certain limit or paid down at any time.

A credit card is a typical instrument which offers revolving credit.


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https://payrollheaven.com/define/revolving-credit/
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Revolving Credit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 30, 2020 https://payrollheaven.com/define/revolving-credit/.
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Revolving Credit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/revolving-credit/ (accessed: March 30, 2020).
American Psychological Association (APA):
Revolving Credit. PayrollHeaven.com. Retrieved March 30, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/revolving-credit/

Definition Sources


Definitions for Revolving Credit are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 13th February 2020.