what is revolving credit?
A line of credit and revolving credit are two ways that a business or individual can obtain the money needed to make a purchase. A line of credit is a type of revolving credit, which works similar 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.