ROLLOVER CREDIT Meaning and
Definition
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Rollover credit refers to a financial concept that allows unused credit to be carried forward to the next billing cycle or period. It typically applies to credit cards, loans, or other lines of credit. When a consumer does not fully utilize the available credit during a given period, rather than losing the unused portion, it can be carried forward to the following billing cycle without incurring any penalty. Rollover credit acts as a form of accumulated credit or a store of value that can be utilized in subsequent periods.
For example, if a credit card holder has a credit limit of $5,000 and only uses $3,000 in a billing cycle, the remaining $2,000 is considered rollover credit. Instead of the $2,000 being forfeited or deducted from the available limit, it is carried over to the next billing cycle, allowing the cardholder to utilize a total credit of up to $7,000 in that subsequent period. This rollover credit can be beneficial for individuals who may need to make larger purchases in the future without the need for additional credit approval.
Rollover credit can provide flexibility and convenience for borrowers, as it allows them to better manage their available credit. However, it is important to note that the terms and conditions of rollover credit may vary depending on the specific financial institution or credit provider. It is advisable for consumers to be aware of the rules regarding rollover credit on their respective credit accounts to effectively utilize this feature and avoid any potential fees, penalties, or misunderstandings.
Common Misspellings for ROLLOVER CREDIT
- eollover credit
- dollover credit
- follover credit
- tollover credit
- 5ollover credit
- 4ollover credit
- rillover credit
- rkllover credit
- rlllover credit
- rpllover credit
- r0llover credit
- r9llover credit
- roklover credit
- roplover credit
- roolover credit
- rolkover credit
- rolpover credit
- roloover credit
- rolliver credit
- rollkver credit
Etymology of ROLLOVER CREDIT
The etymology of the term "rollover credit" can be understood by breaking down its individual components.
1. Rollover: The word "rollover" originated from the verb "roll" combined with the suffix "-over". In this context, "roll" refers to moving or transferring something from one period to another without starting afresh. The concept of "rollover" is commonly used in financial and banking contexts to describe the action of extending the maturity or due date of a debt or investment, often with the accumulation of additional interest or fees.
2. Credit: The term "credit" derives from the Latin word "creditum", which means loan or trust. It refers to a financial arrangement where one party (creditor) lends money or resources to another party (debtor), with the expectation of repayment in the future.
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