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Line Of Credit or Revolving Line Of Credit means a Credit Cardholder with say a $10,000 Card Limit on their Credit Card can make Purchases up to $10,000 and take receipt of those purchased items where the - (i) Credit Cardholder's Credit Card Issuer puts the Merchants in funds for the cost of those Purchases on the date of each Purchase; and (ii) the Credit Card Issuer does not charge the Credit Cardholder for the cost of those Purchases for 'up to 55 days' later.
For the vast majority of Credit Card Products, the Credit Cardholder pays no interest for its Line Of Credit for the Interest Free Period 'up to 55 days', provided it repays the Credit Card Issuer the full amount of the Previous Month's Purchases which aggregates to the Closing Balance by the Payment Due Date.
The Writer has two Credit Cards which he has set up 'Monthly Debits' for his primary banker to automatically debit his savings bank account to repay his Closing Balance each month on the Payment Due Date. He enjoys a minimum of 28 days and a maximum of 42 days interest free on his Purchases. Neither Credit Card charges an Annual Cardholder Fee. For approx. 25 years, the Writer has paid no fees/interest on his two Credit Cards, which each provide 'up to 42 days' Line of Credit. Yet he has made Purchases which aggregate more than $350,000. He is not alone. There are many Financially Educated Credit Cardholders that similarly enjoy a 'up to 42 days' Line of Credit at no cost, without contributing to the high cost of providing the multiplicity of Credit Card Products.
The Writer argues that Revolvers (33% circa of Credit Cardholders that possess only Level 1 or Level 2 Financial Literacy) pay the Transactors (67% circa of Credit Cardholders that possess Level 3, 4 and 5 Financial Literacy) Lines Of Credit.
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