Revolving Credit

Revolving credit pages explain accounts that let a borrower reuse available credit as balances are repaid. This section helps readers understand why revolving accounts behave differently from fixed-term loans.

It is the right place to compare balance management, available credit, utilization pressure, and the way ongoing card borrowing can affect both cash flow and scores.

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• Revolving Credit

In this section

• Revolving Credit
  Revolving credit is reusable borrowing that allows balances to rise and fall within an approved limit.
• Over-the-Limit
  Over-the-limit means the balance or account activity has gone beyond the approved credit limit.
• Minimum Payment Warning
  A minimum payment warning is a notice showing how long repayment may take if the borrower pays only the minimum.
• Billing Cycle
  A billing cycle is the recurring period used to group account activity before a statement is issued.
• Statement Closing Date
  A statement closing date is the date when a billing cycle ends and the statement balance is set.
• Due Date
  A due date is the deadline for making the required payment on a revolving credit account.
• Variable APR
  A variable APR is an annual percentage rate that can change over time based on the account terms and market benchmarks.
• Purchase APR
  A purchase APR is the annual percentage rate that applies to ordinary purchase balances on a revolving account.
• Balance Transfer APR
  A balance transfer APR is the annual percentage rate applied to transferred debt on a credit-card account.
• Cash Advance APR
  A cash advance APR is the annual percentage rate that applies to cash-advance balances on a credit-card account.