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.

Related terms

Reviewing: Debt & Loans (45 of 57)
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Hey there! I’m Mia. Have questions about Revolving Credit?
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