---
title: "Revolving credit: definition | Desert Rock Capital"
url: "https://www.desertrockcapital.com/glossary/revolving-credit"
description: "Revolving credit is a form of borrowing that can be used repeatedly up to a set limit, paid down, and borrowed again, such as a credit card or a line of credit."
---

Repayment & risk

# Revolving credit
All lending terms
Definition

Revolving credit is a form of borrowing that can be used repeatedly up to a set limit, paid down, and borrowed again, such as a credit card or a line of credit. There is no fixed number of payments and no set payoff date.

Revolving credit gives you a credit limit that can be drawn on, repaid, and drawn on again, with the available credit replenishing as the balance is paid down. Credit cards, personal lines of credit, and home equity lines of credit (HELOCs) are common examples. Because the balance can change over time, payments are usually calculated as a minimum based on the outstanding balance, and there is no predetermined number of payments or single payoff date. Interest is generally charged on the balance carried. Revolving credit contrasts with installment credit, which provides a set amount up front and a fixed schedule of payments to a defined payoff date.

Source: [Experian](https://www.experian.com/blogs/ask-experian/what-is-revolving-credit/). This definition is general educational information, not legal or financial advice.
Related

- [Compare: vs. credit card debt](/compare/credit-card-debt)
- [Personal loans](/services/personal-loans)
- [Line of credit](/glossary/line-of-credit)
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