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A key difference between a line of credit and a revolving credit agreement is that under a line of credit: the bank agrees to make funds available as long as the borrower's credit rating doesn't deteriorate, while in a revolving credit agreement, the bank guarantees that the funds will be available.
The term revolver comes from revolving credit, a category of financing or borrowing. A revolver lets an individual consumer or a business open a line of credit through a credit card or line of credit bank account, where the credit issuer offers a specified level of credit over time.
In summary. Revolving credit is a line of credit that remains available over time, even if you pay the full balance. Credit cards are a common source of revolving credit, as are personal lines of credit.
Revolving credit facilities are a type of committed credit facility which allow the borrower to borrow on an ongoing basis while repaying the balance in regular payments.
Revolving credit and lines of credit have similarities and differences. Revolving credit remains open until the lender or borrower closes the account. A line of credit, on the other hand, can have an end date or terms for a time period when you can make payments but not withdrawals.