revolving
Referring to a line of credit that can be used repeatedly up to a certain limit, as long as regular payments are made.
Unlike installment credit (like a car loan with a fixed end date), revolving credit remains open and usable as long as the account is in good standing.
Word relationships
- open-ended: Open-ended is a broader term for any credit without a fixed end date, while revolving specifically implies the balance can go up and down repeatedly.
- installment: Installment credit requires fixed monthly payments over a predetermined period until the balance is zero.
Commonly confused with
- rotating: Rotating refers to things turning physically or taking turns in sequence, whereas revolving in finance refers to a continuous cycle of borrowing and repaying.
Word family
- revolve (verb): To move in a circular orbit or cycle.
- revolution (noun): A complete cycle or turn.
Collocations
- revolving credit
- revolving balance
- revolving debt
Example sentences
- "A revolving credit account allows you to borrow money up to a certain limit, pay it back, and borrow it again." Financial advice column
Memory hook
Think of a revolving door. You can keep going in and out of it repeatedly, just like you can repeatedly borrow and repay money on a revolving credit card. A revolving door of borrowing and paying.
When not to use
Do not use to describe loans with a fixed repayment schedule and a set end date, such as mortgages or auto loans.
Fun facts
- The first modern revolving credit card was introduced by Bank of America in 1958, which later became Visa.
Related words
Explore more words
continually, credit, renewable, recurrent, perennial, sustainable
Our English vocabulary app: FSRS spaced repetition, 5,000+ curated words across 119 topic groups, CEFR A1 to C2. Explore your mastery with the beautiful Vocabulary World feature.