Revolving credit and line of credit are two types of financing arrangements that provide you with flexible options.
A revolving line of credit remains open until the lender or borrower closes the account when it is no longer needed.
A line of credit can have an end date or terms for a time period when you can make payments but not withdrawals.
Both types of credit have a set amount available to use. Your purchasing power is reduced by the amount you spend.
In both types of credit, you receive a bill from the lender or credit issuer, typically on a monthly basis.
In both cases, you can pay a minimum, above the minimum, or the full balance, on each monthly billing cycle.
The main difference between the two is that revolving is open-ended and can be used repeatedly to a certain limit.
On the other hand, a line of credit is a one-time arrangement between you and the lender with a term limit.
In both cases, take credit only if you really need it. Make payments in time and in full to avoid financial pitfalls.