{"id":1527,"date":"2022-01-26T17:53:50","date_gmt":"2022-01-26T17:53:50","guid":{"rendered":"http:\/\/www..dovly.com\/post\/how-revolving-debt-affects-your-credit\/"},"modified":"2023-12-26T18:40:15","modified_gmt":"2023-12-26T18:40:15","slug":"how-revolving-debt-affects-your-credit","status":"publish","type":"post","link":"https:\/\/www.dovly.com\/post\/how-revolving-debt-affects-your-credit\/","title":{"rendered":"How Revolving Debt Affects Your Credit"},"content":{"rendered":"

Revolving credit refers to accounts that have a line amount that you can borrow against as needed, and as you pay it back, it becomes available to borrow again. This is how credit cards work, as well as home equity lines of credit and personal lines of credit. Credit cards<\/a> and revolving lines of credit are convenient ways to pay for unexpected expenses. Let\u2019s look at how revolving debt affects your credit.<\/p>\n

Handling Revolving Credit<\/strong><\/p>\n

How you handle revolving credit can either help or hurt your credit. If you\u2019re just getting started with a credit history, or if you\u2019re rebuilding after previous financial difficulties, having a revolving account can help you begin to build a positive payment history, as long as you make your payments on time.<\/p>\n

Whenever you borrow against a revolving account, it\u2019s a good idea to have a plan on how and when it will be paid back and to pay it off before you borrow against the line again if possible. If you\u2019re not able to pay the balance off in full right away, interest is charged on the balance you carry, and you\u2019re expected to make a minimum payment each month. The longer you carry the balance, the more you\u2019ll pay in interest.<\/p>\n

Revolving Credit and Your Credit Score<\/strong><\/p>\n

Consistently making your payments on time is one of the most important parts of your credit score. Other ways revolving credit can affect your credit score include:<\/p>\n