Revolving credit is a credit arrangement where a borrower is given a set credit limit and can use, repay, and reuse the funds as needed. Unlike installment loans, revolving credit doesn’t require a fixed monthly payment; instead, minimum payments are calculated based on the current balance. Some common examples of revolving credit include credit cards and home equity lines of credit (HELOCs). While revolving credit offers flexibility in spending and repayment, it can lead to higher interest costs if balances are carried over. Remember, responsible management is more than crucial to avoid accumulating debt.