The correct answer is; because spending could get out of control.
Explanation:
When a person is given revolving credit they are given credit that is the exact same amount each month. This is also known as open credit. The cardholder can use the credit instead of cash if they choose too. At the end of the month, they will get a statement with the balance due. The entire balance can be paid in full. If the payment is not made in its entirety, interest will start building on the monies owed.
The best example of a revolving credit line is a credit card.
A few ideas that can help a cardholder use the credit to their advantage are;
- If possible, try to pay the entire bill at the end of the month
- try to keep all of your credit cards with a low balance if they can't be paid off
- try to avoid applying for more credit cards, this can lower your credit score.
Learn more about revolving credit at https://brainly.com/question/2368501
#LearnwithBrainly
