What is Revolving Debt - Guide and Explanation
What is Revolving Debt? Revolving debt is also referred to as a line of credit (LOC). A revolving debt does not have a fixed payment amount every month. The charges are based on the actual balance of the loan. The same is true for the computation of the interest rate; it is dependent on the...
VantageScore
What is VantageScore? VantageScore is a credit rating service that caters directly to individual consumers. It is a credit rating product that was jointly developed by three credit rating bureaus, i.e., Equifax, Experian, and TransUnion. The product was created as an alternative to the FICO score, which was developed by the Fair Isaac Corporation. What...
Revolver Debt
What is Revolver Debt? Revolver debt, also known as revolving debt, is a form of credit that can be accessed by corporations and individuals. What separates revolving debt from regular installment loans, then? In a regular loan, the borrower is given access to a fixed sum of money that must then be amortized and paid...
Bullet Loan
What is a Bullet Loan? A bullet loan is a type of loan in which the principal that is borrowed is paid back at the end of the loan term. In some cases, the interest expense is added to the principal (accrued) and it is all paid back at the end of the loan. This...
Distressed Debt
What is Distressed Debt? Distressed debt refers to the securities of a government or company that has either defaulted, is under bankruptcy protection, or is in financial distress and moving toward the aforementioned situations in the near future. It includes all credit instruments that are trading at a significant discount and have a spread substantially...
