Compare revolving credit and closed-end credit. car lease credit cards mortgage loan home-equity line of credit

Revolving Credit: Credit Cards & Home- equity line of credit

Closed-end Credit: Car Lease & Mortgage Loan

Revolving Credit: Credit Cards and Home-equity line of credit

Closed-end Credit: Car Lease and Mortgage Loan

Explanation: Revolving credit is credit that is automatically renewed as debts are paid off. As credit cards are paid off, there is more money that is still there and available for the consumer. Close-end credit should be paid in full at the end of every term such as car loans and mortgage lending, the loans are to be closed-out when the term agreement is complete.

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