Credit glossary
Revolving account
A credit line you can borrow against, repay and borrow again up to a limit, such as a credit card or personal line of credit.
Revolving accounts drive utilization, the ratio of balances to limits inside FICO's amounts owed category. Because the balance can change every month, these accounts show your current borrowing behavior more directly than any other type. Most score versions read only the latest reported balance, while trended models like FICO 10T and VantageScore 4.0 look at how balances moved over 24 months.
Card issuers usually report around the statement closing date, so the timing of your payment shapes what the bureaus see. Keep at least one revolving account open and active, since an unused card can be closed for inactivity without notice. Moving revolving debt to an installment loan can lower utilization even though your total debt stays the same.
Guides that go deeper
- Credit utilization, explained with the actual mathCredit utilization is card balances divided by card limits. See the math per card and overall, what counts, and why last month's ratio stops mattering.
- Using a personal loan to pay off credit cards: the score mathMoving card debt into a personal loan can drop your utilization sharply. Why it works, what it costs on the scoring side, and the mistake that undoes it.
- When card issuers report to the credit bureaus, and how to checkMost card issuers report once a month, usually around the statement closing date, but schedules vary. How to find out exactly when your cards report.
Sources
- Types of Credit, myFICO
- What is Amounts Owed?, myFICO
- What You Need to Know About the New FICO 10 Scores, Experian
- When Do Credit Card Companies Report to Credit Bureaus?, Equifax
- 12 CFR 1026.9, Subsequent disclosure requirements (Regulation Z), eCFR
This is education, not legal or financial advice. Spot an error? Tell us and we'll fix it.