Revolving credit is a type of loan that gives you access to a set amount of money.
A revolving credit account lets you repeatedly borrow against and pay off a credit line without having to apply for a new loan.
You can access money until you’ve borrowed up to the maximum amount, also known as your credit limit. As you repay the outstanding balance, plus any interest, you unlock the ability to borrow against the account again.

With revolving credit, you can make a minimum payment and carry — or “revolve” — the rest of your debt from one month or billing period to the next. When you carry a balance on a revolving account, you’ll likely have to pay interest.

A major example of a revolving credit line is a credit card, such as the ones offered by O3 Cards.

Difference Between Revolving and Non-revolving Credit

With a non-revolving installment loan, you borrow a fixed amount of money upfront and
then repay it with interest in installments over a specific period of time.
Once you pay off the loan in full, the account is closed and you’ll have to apply for a new loan if you need to borrow more money.
Examples of non-revolving installment loans include auto loans and student loans.


The greatest advantage of revolving credit is that it is available when you need it. You don’t need to apply for a loan every time you don’t have enough cash to buy something.
You can also use as much or as little credit from your line of credit as you want. With an O3 Credit Card, for instance, you can buy a pack of gum as easily as you can purchase a new phone or pay rent.

Revolving credit can also be used for any type of purchase. Mortgages, for example, are only good for buying a home, and car loans can only be applied to automobiles. But a revolving credit line can be used for virtually any purchase.

Revolving credit offers one financial solution to people who have steady jobs but irregular paychecks. Perhaps you’re a successful small business owner, but everyone who runs a business knows that some months are slower than others. With revolving credit, you can buy things on credit now and pay for them when you have the money on
hand after a few big sales.

One of the greatest advantages of credit cards — the most popular form of revolving credit is that they are safer to carry around than cash and they are accepted just about everywhere. Imagine if you had to keep enough cash on hand to pay for fuel, groceries, movie tickets, unplanned date nights and all your other incidental purchases.

So why don’t you stop unnecessary loan applications. Get an O3 Credit Card today and say bye-bye to fretting about unplanned expenses.

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