What is a Revolving Credit? | Explained

[@Immort4lsynergy]

Nice one Ed. Awesome to see how far you have come. I still remember playing table tennis with you on your first day at DSC.

[@bcrobson]

Very informative & excellent presentation. Thank you.

[@ahv5457]

Thank you! Very helpful.

[@GauravAgarwal247]

Very informative!

[@manilkapoor]

Good information. Please also add some key points banks consider when a request for RC goes to the bank.

[@rapatel1642]

Would you use it in 2022 with high interest rates?

[@charmendro]

given that the interest rates are subject to change, does that mean one month I'm paying 2% and the next it might spike to 5%?

[@SpectacularSewing]

Yes although I imagine it’s rare interest rates would go from 2-5%. It would be a slow increment over time. In that case I think you could change that RC to a fixed rate if you anticipate a quick increase

[@ownerjlddshjlsszdjk1522]

Is it true? if you get a revolving credit 100k you have to pay the bank 200k to close it.

[@lntg]

I don’t think that’s true but regardless you could let it sit at $0 owed on the revolving credit so you’re not paying interest.

[@nibrassAlmarifa]

you well explained but credit revolving seem like a slavery System where average man work very hard to make corporate masters and bankers rich by selling him more product he does not need, and pay more interest to banks.