Revolving Credit

Explanation: A line of credit that allows consumers to pay all or part of an outstanding balance. As the balance is paid, it becomes available to spend again as credit.

A credit card or a home equity line of credit are forms of revolving credit, because you are given a credit limit and as you pay down your balance you get more available credit at your disposal.

Related Terms:
Installment Credit, Available Credit, Credit Card, Balance, Balance-to-Limit Ratio
Synonyms:
Revolving Line of Credit, Revolve