Nonrevolver

AAA

DEFINITION of 'Nonrevolver'

A credit card holder who pays his or her balance in full each month within the stated grace period on the account. By using the card in this manner the account holder does not incur finance charges or interest payments.

Also sometimes referred to as a "deadbeat" or "convenience user," since the credit card company does not earn any interest or non-interest revenue from the account, and the customer is able to use the card for his or her convenience instead of writing checks or using cash.

INVESTOPEDIA EXPLAINS 'Nonrevolver'

Nonrevolvers will typically pay more attention to the grace period – the time between when a bill is sent and interest is charged on the unpaid balance – than the annual percentage rate (APR) on the card, since the holder does not intend to carry a balance. In addition, nonrevolvers are likely to make sure they do not incur an over-the-limit fee or use the card for cash advances, which incur a cost as well.

RELATED TERMS
  1. Positive Authorization

    A system used to authorize retail purchases. Positive authorization ...
  2. Retroactive Interest Rate Increase

    A common practice used in the credit card industry to increase ...
  3. Negative Authorization

    A credit card approval system that compares a credit card number ...
  4. Double-Cycle Billing

    A method used by creditors, usually credit card companies, to ...
  5. Credit Card

    A card issued by a financial company giving the holder an option ...
  6. Subprime Credit Card

    A type of credit card issued to people with substandard credit ...
Related Articles
  1. Credit & Loans

    Credit Card Arbitrage: Free Money Or Dangerous Gamble?

    Credit card arbitrage is a way to make some money, but it's a major gamble with devastating risks.
  2. Budgeting

    How Much Debt Can You Handle?

    Follow these five steps to manage debt without cutting up your credit cards.
  3. Credit & Loans

    Getting Your Kids Their First Credit Card

    Putting some plastic in your children's wallets may actually help them - if you do it right.
  4. Credit & Loans

    Take Control Of Your Credit Cards

    The plastic in your wallet doesn't have to hurt your finances. Learn how to manage it responsibly.
  5. Credit & Loans

    How Credit Cards Affect Your Credit Rating

    The average American household has four cards, but does that mean more is better?
  6. Retirement

    Understanding Credit Card Interest

    Paying these rates can impact your disposable income and your investment returns.
  7. Options & Futures

    Cut Credit Card Bills By Negotiating A Lower APR

    Reducing the rate charged on your credit card balance is the first step to getting out of debt.
  8. Savings

    Why Do Credit Cards Expire?

    Credit cards expire for more reasons than you could imagine – including, so you don't forget you have the card.
  9. Credit & Loans

    Meet The Company Behind Your FICO Score

    There are other credit scores that evaluate lending risk, but FICO is still the choice of most U.S. lenders.
  10. Stock Analysis

    How MasterCard Likely Earned a Spot in Your Wallet

    An in depth look at MasterCard and its future prospects as an investment.

You May Also Like

Hot Definitions
  1. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  2. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  3. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  4. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  5. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  6. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
Trading Center