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What is a Revolving Account?

4 min read

Last Updated: January 14, 2026

Table of contents

Key Takeaways

A revolving account is a credit account that you can borrow against multiple times, like a credit card.
If you lack revolving accounts, it might negatively affect your credit score.
You could add revolving credit accounts to your credit file by getting a credit card.

Credit cards are a type of revolving account that can influence your credit score. When you check your credit, the reporting agency may provide a list of relevant factors including “lack of recent revolving account information” — meaning a new revolving credit account may improve your credit mix.

If a lack of revolving accounts is a factor impacting your credit score, opening and responsibly using a revolving account, like a credit card, could help your credit score.

What is revolving credit?

Revolving credit accounts are credit lines that you can borrow against multiple times within a set limit. As you repay your revolving balance, you restore your credit limit. Common types of revolving credit accounts include:

Credit cards
Personal lines of credit
Home equity lines of credit

How revolving credit works

When you have a revolving account, it doesn’t automatically mean you’ll have a higher credit score. However, lacking a revolving credit account may limit your credit mix, which is a factor in credit scoring and can impact your overall credit work (building and maintaining credit).

With this kind of credit, you have control over how much you charge and pay each month with your credit card. You can show lenders your ability to responsibly manage a credit line through:

Opening a credit card
Avoiding high balances
Paying bills on time

For example, you can improve your credit score by using a credit card for everyday purchases, like groceries and gas, and paying these charges off each billing cycle.

On the other hand, if you use your credit card frequently for large purchases and are unable to pay it back with cash, you may accrue interest over time. This is where responsible use of your revolving credit is critical.

Revolving credit vs. installment loans

A revolving credit is different than an installment account, which is a loan that has a predetermined payment period divided into regular fixed payments (i.e., installments). Examples of installment credit accounts include mortgages or an auto loan, student loan, or personal loan.

With an installment loan, payments remain the same month-to-month. However, multiple missed payments can result in loss of a car, home, or other collateral. Revolving accounts offer more flexibility, because you aren’t required to pay the full balance back each pay period.

Installment and revolving credit accounts may appear on your credit report, and according to the Fair Isaac Corporation (FICO), both can impact your credit score.

The following are scoring factors related to each type of account:

Your payment history with both types of accounts (e.g., paying on time)
The portion of an installment loan you’ve paid
The portion of your revolving account’s credit limit you’re using (called your credit utilization ratio)

Get a free Credit Scorecard with your FICO^® Credit Score and important information behind it, like credit utilization, number of missed payments, number of recent inquiries, length of credit history and total number of accounts.²

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How many revolving credit accounts do you need?

Even one revolving account that you regularly use may be enough to improve your credit work. Multiple accounts in your name might impact your credit score, but it depends on the entirety of your credit report and the credit score model. It’s recommended to have a mix of revolving accounts and installment credit accounts to positively influence your credit score, but it’s also important not to have more credit accounts than you can manage responsibly.

How do you stay on top of revolving credit?

While revolving credit is often part of a healthy credit file, it’s important to manage revolving debt responsibly. Otherwise, you could face late fees or unmanageable bills. The following steps may help you keep revolving credit accounts in check:

Whenever possible, repay your entire balance each billing cycle. That way, you can avoid interest fees and keep your credit utilization ratio to a minimum.
If you can’t repay your entire balance, make sure you cover at least your monthly minimum payment by the due date.
Monitor your available credit so you don’t go over your credit limit or max out your card.
Make sure you have the money to pay back purchases made with your revolving credit account.
Check your credit statement frequently to identify any suspicious charges or incorrect information that could hurt your credit score.

The bottom line

A lack of revolving credit could impact your credit score, but whether you should add a revolving credit account would depend on your overall financial situation. If you can successfully manage a new revolving credit account, then it might be beneficial to have one.

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