What type of credit lets borrowers use a limit repeatedly as they repay it?

Revolving credit lets borrowers use a credit limit repeatedly as they repay borrowed amounts.

A credit-card account is the most familiar example. The borrower can make purchases, repay some or all of the balance, and then use available credit again. Interest, minimum payments, fees, and the treatment of new purchases depend on the account agreement.

This differs from installment credit, such as a typical auto loan or mortgage. Installment borrowing is advanced as a set amount and repaid through scheduled payments over a defined term, while revolving credit does not normally require the entire principal to be repaid on one fixed schedule.

A credit limit is not the same as available credit. The limit is the maximum balance allowed, while available credit falls when the borrower makes purchases and generally rises after payments are credited.