Revolving Credit
Also called: revolving debt, revolving account
Revolving credit lets you borrow up to a limit, repay, and borrow again with no fixed end date — credit cards, overdrafts and HELOCs. The flexibility is priced: revolving rates are typically the highest consumer rates available, and the minimum payment is engineered to keep you paying interest for years. Because balances fluctuate, revolving accounts drive credit utilization, which installment loans do not.