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What is a revolving credit agreement?


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2010-10-06 18:47:49
2010-10-06 18:47:49

A revolving credit agreement is a legal contract between a lender and a borrower whereby the lender agrees to lend up to a certain amount to the borrower for some period of time. The borrower agrees to make minimum periodic payments during the time that the revolving credit agreement is in force and pay off any balance due at the end of the contract period.

Many revolving credit agreements automatically renew after the agreed period (unless the credit circumstances for the borrower have radically changed).

An example of a revolving credit agreement is the credit card. A credit card has a credit limit ("up to a certain amount" or "maximum"), an expiration date ("some period of time") and minimum payment requirements ("minimum periodic payments"). Most credit card agreements are renewed before the original agreement (the card) expires.


Related Questions

A credit card is a type of revolving credit, whereas a revolving credit account may or may not be a credit card. Revolving credit can also include other types of accounts, such as a revolving line of credit with a bank or a home equity line of credit.

The meaning of a revolving line of credit is a line of credit that is not linked to a certain number of payments. It is the complete opposite of installment credit.

Yes, if the account type is considered a line of credit it will be calculated into your revolving account balance on your credit report.

The three types of accounts on a consumer credit report are installment accounts, revolving credit and open accounts. Credit cards are considered revolving accounts.

The type of credit that is extended when a person uses a credit card is revolving credit. Revolving credit allows the consumer to carry a balance and pay a minimum monthly.

RC loan refers to Revolving Credit Loan. Revolving Credit is a line of credit, which maybe used whenever a company needs funds. Usually, such credit doesn't have fixed number of payments.

A line of credit is one type of revolving credit, which works similarly to a credit card. Both a line of credit and revolving credit have a set amount available to use, and when you pay down or pay off the amount, the credit is available for you to use again. A line of credit may use collateral to secure the loan, such as a business building, or it may be unsecured or without collateral, such as a credit card.

Revolving Documentary Letter of Credit

Revolving unsecured credit accounts (credit cards).

Credit cards are revolving accounts. Whereas car loans and home loans are not. A revolving account is one where you can carry a balance and charge it back up as you pay it off.

credit is any money loaned to you including cards/installments/mortgages etc and revolving indicates a line of credit or credit card which has a limit available and you can use and pay and reuse where an installment has a specific amount and you pay it off and it closes

The balance on a consolidation loan is based on the outstanding balances of your debt, not on the total amount of your revolving credit lines.

A revolving department store credit card means that the interest accumulates monthly and the balance carries over. Most credit cards that are issued by a department store have this type of account.

A Revolving letter of Credit is issued by a financial agency to its clients and potential customers of the availability of credit facility offered. The letter contains the credit terms and conditions that are attractive to the clients and potential customers. It is one of the ways which a financial agency can generate income.

The biggest difference between an overdraft facility and a revolving loan is that a bank is required to make the revolving loan. An overdraft facility is only an agreement between the bank and the customer that fulfills requests that are no more than a certain amount. The revolving loan is also up to an agreed maximum amount, but only if the borrower agrees to the terms in their agreement.

Revolving bank guarantees limit the overal credit to be allowed to a customer with a validity period. The credit gets released once the customer makes the payment and can be used for new sales again.

Its the highest credit amount used at any one given point in time on your revolving credit product.

Most credit cards are designed as a revolving credit account. You spend money from the card and every month you pay it back so you can again use the money. That is why credit card have monetary limits based on you income and credit history.

One credit facility provided by the commercial bank is revolving credit. Also included are term loans and letters of credit.

is the hump in the back of the neck hereditary

Denied a loan; or depending upon the wording, borrowing on a loan...such as revolving credit...a credit advance.

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