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.
