Revolving credit is a type of credit that allows borrowers to gain access to a certain amount of money (up to the available credit limit). Each time you use the credit in making purchases, the purchase amount is subtracted from your credit limit. The borrower can pay the balance back in full or in partial amounts. Once they carry a balance, finance charges will apply. Moreover, as payments on the balance are made, the 
credit limit goes back up.
Another key feature of revolving credit is that the account stays open until the borrower chooses to close the account. If the borrower is in good credit standing, creditors likely offer a raise in your credit limit, increasing the borrowing power of the card.
To make things more comprehensible, let’s cite a concrete example. Say you have a credit card with a credit limit of $5,000. You used up $2,500 for purchases made within the month, leaving you $2,500 worth of available credit at the end of the month. If you decide to fully pay off your balance at the end of the billing cycle, you gain back the full $5,000 borrowing power of the card. This is the concept of revolving credit. On the other hand, if you decide not to pay off the balance, the credit card company will charge interest on the money you owe – in figures of 10% to 28% annual percentage rate. If you continue to revolve your credit month after month, this sum can increase and you find yourself in serious debt.
Revolving credit cards are excellent for those who would like access to credit and have freedom to spend without having to pay the balance fully at the end of each month. It can 
be particularly helpful as it allows important purchases to still be made even during months where cash flow is low or during times of emergency.
Finance charges are the main backdraw to revolving credit cards. However, high financial charges can be minimized if you use your card right and pay off as much balance as you can monthly. In fact, if you make it a habit to pay off your balance fully at the end of a billing cycle, you should be able to take most advantage of the purchasing power of your revolving credit card.
