Revolving Credit

Business, Legal & Accounting Glossary

Definition: Revolving Credit

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.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Revolving Credit. Payroll & Accounting Heaven Ltd. July 04, 2020
Chicago Manual of Style (CMS):
Revolving Credit. Payroll & Accounting Heaven Ltd. (accessed: July 04, 2020).
American Psychological Association (APA):
Revolving Credit. Retrieved July 04, 2020, from website:

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 | 0 Views.