Cards
What is a revolving credit card?
A revolving credit card is one that allows you to finance your purchases, cash withdrawals or cash transfers to your current account, repaying the credit in monthly instalments that include principal and interest. “” You can choose the amount of these instalments, either as a percentage of the existing debt or as a fixed amount, meeting the minimum established by the entity.
The contract is for an indefinite duration, although you can cancel it at any time by paying off the outstanding balance, resulting in the card being cancelled. The entity may also terminate it with a minimum of two months' notice.
Furthermore, its main feature is that the available credit limit is automatically renewed each month, hence the term "Revolving." The available credit limit is reduced by the drawdowns you make with your card and replenished by the payments you make through your monthly instalments.