What is a Credit Card Revolver?

credit card revolver

Credit Card Term: Revolver

A credit card revolver is one who carries a balance on their credit card account from month to month. This amount carried over varies. For some, it is the whole balance minus the minimum payment. Other consumers will choose to pay a more substantial payment. This payment may be half of the total balance. Regardless of the amount of the payment, if a balance is carried over each month, the account holder is known as a revolver.

It is not sound financial policy to be a revolver. Often paying only partial payments compounds debt fast. Individuals can begin to feel like they are drowning in a matter of months. It is wise to charge only what is necessary and to pay as much as possible on the principal. Paying down principal will help revolvers to reduce the overall debt load of all their active trade accounts.

Having revolving credit card balance debt from month to month is big business for banks that issue credit cards. Often consumers lose control, and their finances can accumulate thousands of dollars of debt. Some consumers pay thousands of dollars a year alone on interest.

who is a credit card revolver?

A consumer who is a credit card revolver can lose all the benefits they receive from their credit card reward program if they pay more in interest than the amount of rewards they receive.

It becomes easy over time to carry balances month after month. Interest rates are high with many credit cards in comparison to other types of loans. Many times banks will increase the credit limit of revolvers who pay on time every month. They have hopes that the card holder will charge and revolve even more.

In conclusion, it is understandable sometimes to carry balances from month to month. It is always important to charge as little as possible and to pay off as much as possible. These actions will help to cut down the amount of debt and the amount of interest that is charged on a card holder’s account. Larger payments and fewer charges will contribute to paying down credit balances faster.

Monica Kowollik


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