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 FAQS
  1. What is the difference between "closed end credit" and a "line of credit?"

    Depending on the need, an individual or business may take out a form of credit that is either open- or closed-ended. While ... Read Full Answer >>
  2. What is the best way to start to rebuild your credit after a bankruptcy?

    Bankruptcies can be devastating to your credit score. Even worse, a bankruptcy will be listed on your credit report for between ... Read Full Answer >>
  3. What is the difference between a possessory and a non-possessory lien?

  4. Why is more interest paid over the life of a loan when it is capitalized?

    More interest is paid over the life of a loan when that interest is capitalized because the capitalized interest is added ... Read Full Answer >>
  5. What are the differences between Chapter 7 and Chapter 13 bankruptcy?

    In the United States, the most common kinds of personal bankruptcy filings are under Chapter 7 or Chapter 13 proceedings. ... Read Full Answer >>
  6. What is the difference between a lien and an encumbrance?

    A lien represents a monetary claim levied against property to secure payment of an obligation of the property owner, while ... Read Full Answer >>
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. Credit & Loans

    Credit Card Review: Blue Cash Everyday Amex

    Read about the Blue Cash Everyday Amex card, and learn how it saves cardholders money on groceries, gas and other household purchases throughout the year.
  9. Credit & Loans

    Credit Card Review: Chase Freedom

    Learn about the Chase Freedom card and how it earns 1% cash back on every purchase and up to 5% on purchases in quarterly categories.
  10. Credit & Loans

    Credit Card Review: Citi Double Cash

    Learn about the Citi Double Cash credit card and its simple cash back program that pays a combined 2% rate on every card purchase.

You May Also Like

Hot Definitions
  1. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  2. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  3. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  4. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  5. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  6. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!