What is revolving credit?

Revolving credit is simply credit that doesn't have to be regularly paid down. Most mortgages have a term length, and you'll be paying principle every month in order to eventually be free of the debt (at least in theory, but this is basically the case). A line of credit is continuously available to you, and the maximum amount you're allowed to borrow doesn't go down over time like it would with non-revolving credit.

The great thing about revolving credit is that, once you pay your debt down, you can still borrow up to your credit limit at a later date. If you pay down a typical car loan, for example, you likely won't be able to go back next month and re-borrow a portion of the amount that you just repaid. Revolving credit doesn't "force" you to become debt free the way non-revolving credit can.

I suppose it's more "dangerous" in that sense, but for the responsible borrower I don't think it makes any difference.

Revolving credit is a redit agreement (typically a credit card) that allows a customer to borrow against a preapproved etc.

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