ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Revolving credit is a line of credit that remains available over time, even if you pay the full balance. Credit cards are a common source of revolving credit, as are personal lines of credit.

Detailed explanation-2: -Revolving credit lets you borrow money up to a maximum credit limit, pay it back over time and borrow again as needed. Credit cards, home equity lines of credit and personal lines of credit are common types of revolving credit.

Detailed explanation-3: -Revolving Credit is a line of credit you can keep using after paying it off. You can make purchases with it as long as the balance stays under the credit limit, which can change over time. Credit cards are the most common type of revolving credit.

Detailed explanation-4: -A credit card is a common example of revolving credit. By contrast, a revolving credit facility refers to a line of credit between your business and the bank. You’ll be able to access funds when and where you like, up to an established maximum amount. Revolving credit facilities are also called bank lines or revolvers.

Detailed explanation-5: -Revolving credit can be secured or unsecured. Credit cards are a type of unsecured revolving credit, meaning the lender doesn’t get a fixed asset if the borrower can’t repay the loan.