Which type of credit allows you to borrow up to a certain limit repeatedly?

Revolving credit is a financial arrangement that allows the borrower to access funds repeatedly up to a predetermined credit limit. This type of credit does not require borrowers to take out a loan with a fixed amount; instead, it gives them flexibility in borrowing. As the borrower repays the borrowed amount, they regain access to that same credit limit, making it especially convenient for ongoing expenses, such as those related to credit cards.

This flexibility is one of the key features that distinguishes revolving credit from other types, such as installment credit, which involves borrowing a set amount of money and repaying it in fixed installments over time, or non-installment credit, which does not allow for repeated borrowing. Secured credit, while it can provide access to funds, typically requires collateral and may not offer the same ease of borrowing as revolving credit. Consequently, revolving credit stands out as the most suitable option for situations where repeated borrowing within a limit is needed.