Revolver

Definition

  • A term used by credit card issuers for those card holders who do not pay their card balance in full each month. These card holders carry a partial balance into the next month. Approximately seven out of 10 cardholders revolve their debt.

Synonyms
revolving credit, revolving line of credit

Related Terms and Acronyms

  • Credit Definition,
    • Money that a lender gives to a borrower on condition of repayment over a certain period.
  • Credit Card (CC) Acronym, Very Important,
    • A plastic card with a coded magnetic stripe that, when signed, entitles its bearer to a revolving line of credit, with a credit limit and interest rate determined by the borrower's income and credit report.
    A payment card that gives customers access to a revolving line of credit.
  • Home Equity Line of Credit (HELOC) Acronym, Very Important,
    • An open-ended loan, paid as revolving debt, that is backed by the equity in the property.
    Also known as a Home Line of Credit.
  • Interest Only Payments Definition,
    • A payment plan where only the interest is paid off.
  • Minimum Payment Definition,
    • The minimum amount a cardholder must pay to keep the account from defaulting. Some card issuers set high minimums if they are uncertain of the cardholder's ability to pay. Most card issuers require a minimum payment of three to five percent of the outstanding balance.
  • Revolving Credit Definition,
    • A line of credit that does not have a specified repayment schedule but may require a minimum payment to cover interest and contribute to paying off principal. Typical of credit card loans, chequing account cash reserve or overdraft accounts that have pre-approved lines of credit.
  • Revolving Line of Credit (RLOC) Acronym,
    • An agreement to lend a specific amount to a borrower, and to allow that amount to be borrowed again once it has been repaid. Most credit cards offer revolving credit.
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