Resolving Credit Limit

[Eugine]

A revolving credit limit is a line of credit open to the limit agreed upon that you can borrow. This is common in two types of loans, those of credit cards and in certain home equity loans. Although you may have a maximum limit of credit available to you, this may be called a revolving credit limit or simply revolving credit, because paying back anything you borrow leaves you continual access to credit. Most credit cards work on the principle of the revolving credit limit. You have a set limit of credit. As long as you make payments, or pay back whatever you owe, you continue to have access to the credit up to its limit.