What is a revolving line of credit?

Question

I've just been offered a us bank worldperks visa signature card with a no credit limit with a $7,000 revolving credit line...Can someone please break it down for me...What exactly is a revolving credit line?

Answer 1

A revolving line of credit is where you use it, and then you pay it off. You use it, then pay off some more. The balance should keep going up and down. Hence the revolving part. I would go through your bank for a line of credit and not visa. The interest rates on these are VERY high, ranging from 19-42%. You can generally get a much better rate from your bank with a secured or unsecured rate which either stays stable or floats with the market. GOOD LUCK :)

Answer 2

revolves on a thirty day cycle of billing - if you ever purchase anything, your bill will be due on a "revolving" cycle until you pay off the balanace.  Be careful about the interest rate - for purchases , cash advances and such , the can jump up to as high 29% or more !