what is revolving credit 
revolving credit involves a loan with no fixed end date a credit card account being a good example as long as the account is in good standing the borrower can continue to borrow against it up to whatever credit limit has been established as the borrower makes payments toward the balance the account is replenished these kinds of loans are often referred to open end credit mortgages and car loans by contrast are considered closed end credit because they come to an end on a certain date the bottom linethe word credit has multiple meanings in personal and business finance most often it refers to the ability to buy a good or service and pay for it at some future point credit may be arranged directly between a buyer and seller or with the assistance of an intermediary such as a bank or other financial institution credit serves a vital purpose in making the world of commerce run smoothly 