Roll over the numbers below to learn about the credit cycle.

When you use credit to buy an item from a merchant, you borrow money from a creditor, which is a financial institution that puts up the money to make your purchase possible.

In most cases, you’re required to sign a credit agreement to acknowledge that you agree to pay the creditor back.

Credit cards rely on what’s known as revolving credit. That means you have repeated access to a limited supply of money, known as your credit limit. As you charge purchases, you approach your credit limit. But as soon as you repay any part of what you’ve used, you’re free to use the full amount again.

A line of credit is another type of revolving credit. Banks and other credit providers might offer you a line of credit to make it convenient to borrow larger amounts of money. Instead of a credit card, you may receive a pack of special checks that you can write for amounts up to the credit limit set by your creditor, or lender.