Revolving Line of Credit
Definition
- An agreement between a lender and a borrower where the lender agrees to loan a specific amount to a borrower. Once the money is repaid, the borrower is allowed to borrow the amount again. Credit cards are an example of revolving credit.
Synonyms
revolving credit, revolver
Acronyms
RLOC
Related Terms and Acronyms
- Business Revolving Line of Credit (BRLOC) — Acronym,
- Credit — Definition,
- Money that a lender gives to a borrower on condition of repayment over a certain period.
- Credit Card (CC) — Acronym, Very Important,
- A plastic card with a coded magnetic stripe that, when signed, entitles its bearer to a revolving line of credit, with a credit limit and interest rate determined by the borrower's income and credit report.
➥ A payment card that gives customers access to a revolving line of credit. - Home Equity Line of Credit (HELOC) — Acronym, Very Important,
- An open-ended loan, paid as revolving debt, that is backed by the equity in the property.
➥ Also known as a Home Line of Credit. - Line of Credit (LOC) — Acronym,
- A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
- Revolver — Definition,
- A term credit card issuers use for card holders who roll over part of the bill to the next month, instead of paying off the balance in full each month. About seven out of 10 cardholders revolve the debt.
- Revolving Credit — Definition,
- 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, chequing account cash reserve or overdraft accounts that have pre-approved lines of credit.
