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Mar 23
1. Revolving credit: This type of credit allows borrowers to continuously borrow money up to a certain limit, repay it, and borrow again. Examples include credit cards and lines of credit.
2. Installment credit: With installment credit, borrowers receive a lump sum of money and repay it in fixed monthly installments over a set period of time. Examples include auto loans, mortgages, and personal loans.
3. Secured credit: Secured credit requires borrowers to provide collateral, such as a car or home, to secure the loan. If the borrower fails to repay the loan, the lender can seize the collateral.
4. Unsecured credit: Unsecured credit does not require collateral and is based solely on the borrower's creditworthiness. Examples include credit cards and personal loans.
5. Open credit: Open credit is a type of credit that must be paid in full each month. Examples include charge cards and some business credit accounts.
6. Closed credit: Closed credit is a type of credit that has a fixed term and must be repaid in full by the end of the term. Examples include auto loans and mortgages.
2. Installment credit: With installment credit, borrowers receive a lump sum of money and repay it in fixed monthly installments over a set period of time. Examples include auto loans, mortgages, and personal loans.
3. Secured credit: Secured credit requires borrowers to provide collateral, such as a car or home, to secure the loan. If the borrower fails to repay the loan, the lender can seize the collateral.
4. Unsecured credit: Unsecured credit does not require collateral and is based solely on the borrower's creditworthiness. Examples include credit cards and personal loans.
5. Open credit: Open credit is a type of credit that must be paid in full each month. Examples include charge cards and some business credit accounts.
6. Closed credit: Closed credit is a type of credit that has a fixed term and must be repaid in full by the end of the term. Examples include auto loans and mortgages.
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