glossario

Revolving credit cards are a type of consumer loan. Indeed, the cardholder is given an actual loan that he or she may use to make purchases directly with vendors or to withdraw cash up to certain limit ('ceiling'). The loan is repaid in instalments that consist of principal and interest. With the payment of each instalment, the principal that is repaid is returned to the total credit amount available to make new purchases. The interest rate charged may be much higher than the rates applied to other forms of consumer credit.