Revolving credit allows you to borrow money up to a maximum credit limit, pay it back over time, and borrow again.
Credit cards, home equity lines of credit, and personal lines of credit are common types of revolving credit.
When you open a revolving credit account, you will get a credit limit, which is the max you can spend on the account.
At the end of each billing cycle, you will receive a statement showing the balance, or the total amount you owe.
A revolving credit line can be a useful tool to pay for both day-to-day purchases and one-time expenses.
You then have two options: pay the balance in full or make a minimum payment. Paying in full is always better.
It is important to use revolving credit responsibly and pay over the minimum payment whenever possible.
A good credit score can help you qualify for more favorable revolving credit terms, such as lower interest rates.
Paying back on time allows you to take another credit line. Make sure you use it responsibly and not overspend.