What is a revolving line of credit?

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theccuser
 
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What is a revolving line of credit?

Postby theccuser » Tue Jun 25, 2013 3:53 pm

I read the definition of "revolving line of credit" is any type of credit card. Whether that be a major one like a Visa or American Express, all the way down to a retail affinity card. They all fall under the umbrella of revolving lines of credit.

Then everything else is an installment loan. Mortgages, student loans, car loans and so forth.

But my question is, how accurate is this definition? Because how about all those in-between forms of lending such as a personal line of credit, cash advances, or a purchase made using a retail affinity card but with fixed monthly payments. What are those classified under?


takeshi
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Postby takeshi » Tue Jun 25, 2013 4:37 pm

AmEx charge cards are not revolving lines of credit. AmEx does have revolvers but not all of their cards are revolvers.

MemberSince99
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Postby MemberSince99 » Tue Jun 25, 2013 9:33 pm

takeshi wrote:AmEx charge cards are not revolving lines of credit. AmEx does have revolvers but not all of their cards are revolvers.


Yeah but the difference is kind of splitting hairs to the general public who aren't fanatics like us. The ONLY difference between the Amex charge and revolvers is the charges have to be paid in full each month. And frankly, you'd best not carry a large balance long term on their true revolvers either if you want to stay on their best side.

But the general public probably doesn't really see the difference I would guess.

rockyrock
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Postby rockyrock » Wed Jun 26, 2013 2:07 am

theccuser wrote:I read the definition of "revolving line of credit" is any type of credit card. Whether that be a major one like a Visa or American Express, all the way down to a retail affinity card. They all fall under the umbrella of revolving lines of credit.

Then everything else is an installment loan. Mortgages, student loans, car loans and so forth.

But my question is, how accurate is this definition? Because how about all those in-between forms of lending such as a personal line of credit, cash advances, or a purchase made using a retail affinity card but with fixed monthly payments. What are those classified under?


There are always exceptions but this is generally how it works:

Charge: pay in full (PIF) each month (required) (Amex Green, Gold, Platinum)
Revolving: pay over time; PIF optional (Visa, MC, Discover, store cards, some Amex like SPG, Blue, Delta)
Installment: one time loan with payback usually over a fixed term (car, mortgage, student, etc.)
American Express (2005): Green & Blue Cash Everyday
Chase: Freedom & UA Club USAA: Signature Visa & American Express
Discover it Bank of Hawaii Hawaiian Airlines WEMC Synchrony Sam's MC
Navy FCU Platinum Visa Citi Double Cash & AT&T Access MC



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