Скачать или смотреть How Revolving Credit Works. Part1

How Revolving Credit Works. Part1

A letter arrives in the mail. "Congratulations! You've been preapproved for a National Bank Platinum Card with a credit limit of $25,000 dollars!" You consider what you could buy with $25,000. Or how you could use it to pay off the balance on your three other credit cards.

Credit cards are the perfect example of revolving credit. With revolving credit, a bank allows you to continuously borrow money up to a certain credit limit. Every time you buy something on credit, that amount is subtracted from your total credit limit. And every time you pay off your balance, your credit limit goes back up. Sounds easy, right?