Revolving Charge

Revolving Charge

A type of credit arrangement that permits a buyer or a borrower to purchase merchandise or obtain loans on a continuing basis as long as the outstanding balance of the account does not exceed a certain limit.

Revolving charge agreements are usually made in connection with the use of a bank or a department store credit card. The term revolving charge is used interchangeably with the term revolving credit.

When all outstanding charges are paid before or on the payment due date, which is usually immediately before the date of the second billing, no interest charge is assessed against the account, although this policy might change in the future. For example, a customer charges $200 in merchandise during the first week in January and receives the statement of her outstanding balance on February 2. If the customer pays the $200 balance in full before March 2, the payment due date, no service charge is added to the account.When the customer does not wish to pay the outstanding balance in full, she may make monthly installment payments, if the credit agreement so provides. The amount of each payment is determined according to a schedule based on a percentage of the outstanding balance of the account. A monthly interest charge is also added to the unpaid balance, usually at the rate of 11/2 percent per month.

Ordinarily each customer has his own line of credit, the maximum amount that the customer is permitted to charge. Once this limit is reached, no additional merchandise can be charged to that account until some payment has been made to reduce the outstanding debt.

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In 2011, Pilgrim expanded its payment options by joining TD Retail Card Services' Renovate program, a revolving charge card for independent home furnishings retailers that provides many of the important advantages of a private label card to companies with single or multiple locations.
Examples of these include (but are not limited to) the LIFO index for taxpayers using dollar-value LIFO inventory method, the deferred gross profit for taxpayers with revolving charge accounts, intercompany adjustments for taxpayers who file consolidated returns, and a temporary liquidation of a LIFO layer at the installment date.
Customers are allowed to finance a purchase for a set period of time and their interest is forgiven if they complete payments within that period, but if they fail to do so the plans revert to being an ordinary revolving charge program in which interest applies.
Can you only make the minimum payments on your revolving charge accounts?
Stock Building Supply and GE Business Credit Services, a unit of GE, recently signed an exclusive multi-year agreement to provide two national credit programs, offering Stock's qualifying commercial customers the option between a private label commercial open account receivables program or a business revolving charge account with flexible payment options.
Yard Card and Yard Card Plus -A revolving charge credit card for consumer and commercial customers, respectively, which can be used for new and used equipment, parts and service at participating lawn and garden dealers.
The new agreement in Canada includes Wal-Mart's private label consumer credit business and SAM's CLUB's private label consumer, business revolving charge and business direct portfolios.
Its programs for the furniture industry include traditional private label cards as well as The Renovate Card, a revolving charge card for independent home furnishings retailers that delivers many of the important advantages of a private label card to retailers with single or multiple locations who may not generate the sales volume to justify a private label program of their own.
In addition, the company continued to move customers from an installment-based lending program to revolving charge accounts.
Sale of the approximately $142 million in revolving charge receivables resulted in a one-time after-tax gain of $6.
com credit card, a revolving charge account, will be available through Fingerhut; in addition, checks, Visa, Discover and MasterCard will be accepted.
s existing portfolio of revolving charge accounts and charge sales that consists of (i) claims against bankrupt customers and (ii) accounts that have been turned over to collection agencies and/or attorneys to Pat Comeford ("Purchaser") for $18,000 free and clear of Encumbrances other than those to which Purchaser has agreed to take subject (the "Sale Order") for signature to the Honorable Jeffry H.