Credit offered on the basis that as the debt is reduced, more may be borrowed up to the agreed limit.

A line of credit that may be used repeatedly up to a specified total, with periodic full or partial repayment.

Also called a revolving line of credit, line of credit, or open-ended credit. The agreement, usually with a bank, provides a maximum amount that can be borrowed over a specific period of time. If the full-amount is "borrowed down" or the line of credit is "drawn against," as repayments are made, additional borrowings can then be made.

Credit that is automatically renewed as debts are paid off or paid down. View LEI Lesson(s) that address this term

a consumer credit line that can be used up to a certain limit or paid down at any time

A credit source such as a credit card agreement, which may be used to make additional purchases before repaying the existing debt in full. It is a type of line of credit in that interest is only charged on the monthly-unpaid balance, and only a portion of the unpaid balance need be repaid each month.

Credit in which a borrower can draw on a credit line up to the limit of the line, repay some of the loan, and draw on it again up to the limit of the line. Sometimes the lender may require periodic minimum payments or clean up periods, where the disbursed amount is payed down to zero.

An account that requires at least a specified minimum payment each month plus a service charge on the balance, which can fluctuate up to the credit limit. As the balance declines, the amount of the service charge, or interest, also declines. Back to Glossary Index

A specific type of credit that doesn’t have a schedule of payments but rather requires minimum payments. This is different than a mortgage for example which requires a set payment amount every period.

A credit card that allows payments to be spread over an indefinite period, usually with a minimum required monthly payment; frequently offered by department stores and major petroleum companies.

A pre-established credit line, typically in a credit card, against which a person may borrow to make purchases.

Contractual agreement to loan up to a specified amount of money, for a specified period of time; any amounts repaid can be borrowed again.

Credit which is paid back during the agreed term and which can be availed of again.

Credit allowing the borrower to take credit up to a certain amount, make regular repayments, and keep Borrowing up the credit limit.

A credit that is automatically reinstated each time a draw takes place or upon receipt of authorization from the DC-issuing bank. The credit carries limits on duration and on the borrowing amount (cumulative or non-cumulative) involved for each draw. (see"Special DCs")

Revolving credit is a type of open-end credit. Open-end credit allows the borrower to borrow funds from the loan as long as it does not exceed the credit limit of the borrower. In some cases, lenders require minimum payments or impose a clean-up period. These steps ensure that the borrower continues to have the means of repaying the debt.

Upon repayment by the borrower the credit becomes automatically available.

A credit arrangement allowing the borrower some flexibility as to the scale and timing of a proposed borrowing or note issue. The borrower can usually increase or reduce his indebtedness with some freedom during an agreed period.

Accounts that let debtors spend money borrowed from creditors with the promise to pay it back in a certain amount of time.

Revolving credit is credit that does not have a specific monthly payment and do not have specific duration of time. This is reusable credit such as credit cards.

Typical of a line of credit or credit card in which the amount of available credit increases and decreases as funds are borrowed and then repaid.

A documentary credit whose amount is automatically reinstated either after each drawing or upon authorisation by the issuing bank, but which has a limited duration and limits as to the (cumulative or non-cumulative) amount for each drawing.

A type of credit agreement where as you pay the amount, the credit becomes available; for example, a credit card or home equity loan.

A line of credit extended to customers who may use it as often as desired up to a certain dollar limit. Items purchased using this line of credit, may be paid in full upon receipt of a monthly statement, or they may be paid for in several installments, for which an interest charge is added.

A line of credit that does not have a specified repayment schedule but may require a minimum payment to cover interest and contribute to paying off principal. Typical of credit card loans, checking account cash reserve or overdraft accounts that have pre-approved lines of credit.

Credit cards use a revolving credit system. Youâ€(tm)re given a maximum amount of credit you can use, and have a set minimum monthly payment to meet. You can choose to use some or all of the total credit available, as long as you make regular payments.

A credit automatically reinstated after each drawing or upon receipt of authorisation from DC issuing bank, with limits as to the duration of the facility and as to the (cumulative or non-cumulative) amount involved for each drawing - see Special DCs.

A type of credit which allows a borrower to withdraw funds up to a preapproved credit limit. Credit cards are most often the type of revolving credit borrowers use. Borrowers make payments based only on the amount they've actually charged to their revolving account/credit card, plus interest.

A type of credit that allows a person to borrow money at any time up to a set limit. As the borrowed money is paid back, it becomes available again to borrow. For instance, credit cards operate on revolving credit.

A credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card. As credit is paid off it becomes available again to use for another purchase or cash advance.

Open lines of credit which are subject to variable payments in accordance with the balance. Credit cards are examples of revolving credit.

A form of open-ended credit in which a borrower can draw down on the credit line for the amount of the limit, repay at least some of the loan, and then draw down on the line again up to the limit amount. In some cases, periodic minimum payments or cleanup periods—paying down the disbursed amount to zero—are required by the lender to ensure that the borrower has the financial capacity to repay the line. [] Savings rate The percentage of gross income that is saved or invested. [] Tax rates The percentage of income paid in income taxes. The five federal income tax rates are 15, 28, 31, 36, and 39.6 percent.

A credit which can be automatically renewed without additional negotiation with the bank. It is available up to a specified amount which remains constant during a given period of time, such that whenever it is drawn upon, it becomes available again for its full amount. The lender is legally committed to make available to the borrower the funds agreed upon, while the client can withdraw funds according to his needs. A revolving credit may be granted for short-term credits (less than one year), but also for medium term financing (up to three years). The borrower must pay a commitment fee for the unused amount of the credit facility (usually around 0.5%), in addition to the interest rate charges on the borrowed funds (about 0.5% above the short-term rate). Compare with Overdraft. Français: Crédit revolving (renouvelable) Español: Crédito rotatorio, crédito renovable

A credit line that is restored as the borrower pays off what's owed. Credit cards and home equity credit lines have revolving credit. You could, for example, go on a major shopping spree using your Visa card and charge up to $500. As you pay off your Visa bill, your $500 credit amount will be restored and you can go for the next round of shopping. Loans, such as mortgages and student loans don't have revolving credit.

It is the same thing as a line of credit: an amount of money, which a business can borrow against at times it needs capital. Often accessed by check, ATM, or business card.

A loan where varying amounts can be repaid and then borrowed again. The maximum amount that can be borrowed is called the credit limit. The loan is usually not linked to any specific purchase. Credit cards give access to revolving credit.

A line of credit where the customer pays a commitment fee and is then allowed to take and repay funds at will. It is usually used for operating purposes, fluctuating each month depending on revenues and expenditures.

A credit facility where amounts repaid to the lender may subsequently be redrawn by the borrower.

Line of credit for a fixed sum, allowing repeated use of the credit providing that the fixed sum is not exceeded; regular scheduled repayments of predetermined amounts are made.

A credit arrangement that allows the borrower to borrow a specific amount, pay all or some of that amount back, and borrow again up to a specific amount. ie: Credit Card

Commitment under which funds can be borrowed, repaid, and re-borrowed during life of credit. Such credits have stated maturity date at which time borrower may have option of converting outstanding balance into term loan.

A credit agreement (typically a credit card) that allows a customer to borrow against a pre-approved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due.

Open lines of credit that are subject to adjustable payments in accordance with the balance, such as credit cards.

Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit.