Definition
A type of credit that allows you to borrow, repay, and borrow again up to a certain limit, such as with a credit card.
What to consider
- Compare the gains from different investments to see what works best.
- Keep in mind both short-term and long-term returns.
- Understand that higher ROI may come with higher risk.
Real world scenarios
- To manage his day-to-day expenses, Alex used revolving credit through his credit card, enjoying the flexibility to borrow repeatedly up to his limit.
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