Revolving, or Open-End, Credit: What Is it?
The Fair Credit Billing Act protects your rights with regard to revolving, or open-end, credit accounts. But what are these? They are perhaps the most common type of credit accounts. They involve an arrangement in which the consumer (you) has the option of either drawing upon a preapproved line of credit and paying off the entire balance, paying the minimum monthly payment, or paying any other amount in between. It is called "revolving" credit because the consumer uses the credit, makes a payment, and then uses the credit again. Most common credit cards, such as MasterCard®, Visa®, and Discover®, as well as store credit cards, are examples of revolving credit accounts.