CandleFocus

Revolver

Candlefocus Editor

A revolver is a borrower, either an individual or a company, who holds a revolving credit line, allowing them to access credit whenever it is needed. This type of credit is also referred to as revolving debt and it is accompanied by a credit limit, allowing the borrower to access funds up to that amount and is different from non-revolving financing, which involves a one-time payout and fixed payments.

Revolving credit is attractive to many people because of the convenience it offers and its potential benefits, including the ability to make small, more affordable, repayment amounts and a variety of low introductory rate offers. For businesses, being a revolver can also offer other advantages, such as the ability to access capital quickly to cover unexpected costs or take advantage of business opportunities and, potentially, earn rewards points.

Overall, a revolving line of credit can serve as a powerful financial tool if managed responsibly. Customers should be aware of their borrowing limits and plan ahead to ensure payments can be made with regularity. To ensure lenders offer the best terms and conditions that suit your individual needs and financial goals, it is always best to compare the different revolving credit options and choose the best option for your particular needs. By doing so, you can ensure you are managing your credit responsibly and taking advantage of all the potential benefits available from a revolving credit line.

Glossary Index