Revolving credit

Revolving credit is like having a little piggy bank that you can keep putting money into and taking money out of whenever you need it. The piggy bank never goes away, but the amount of money inside it can change.

For example, let's say your parents give you a piggy bank with $20 in it. You can take out $5 to buy a toy, but then you can put $10 back in later when you get some money from allowance. The piggy bank is still there, and you can keep taking money out and putting it back in as many times as you want as long as you don't run out of money.

That's basically what revolving credit means for grown-ups. It's like having a special piggy bank that you can put money into and take money out of whenever you need it. But the grown-up piggy bank is usually in the form of a credit card or a line of credit from a bank. You can use it to buy things you need, like groceries or gas, and then pay back the money you borrowed later.

But there's a catch - just like with the piggy bank, you can't keep taking money out forever. You have to pay back what you borrowed plus some extra money called interest. This is like giving a little bit of your piggy bank money to your parents for letting you borrow their money.

So, revolving credit is like having a special piggy bank that lets you borrow money whenever you need it, but you have to pay back what you borrowed plus some extra money called interest.