A personal credit line is normally regarded as being a form of revolving account, also called a credit account that is open-end. This arrangement permits borrowers to invest the amount of money, repay it, and spend it again in a practically never-ending, revolving cycle. Revolving records such as for example personal lines of credit and bank cards are very different from installment loans such as for example mortgages, auto loans, and signature loans.
With installment loans, also called closed-end credit records, customers borrow a collection amount of cash and repay it in equal installments that are monthly the mortgage is paid. Continue reading