A debt that allows the borrower to reuse the principal of the loan again once the principal balance has been repaid.
A debt, such as a credit card, that gives a customer a preapproved line of credit and doesn't have a fixed monthly payment.
A debt that does not have a fixed payment but instead is a percentage of the outstanding balance, for example credit cards issued by banks or department stores. second mortgage A mortgage that has secondary rights to the first mortgage which often has a higher interest rate and a shorter term.
Credit account that establishes a maximum dollar amount that can be borrowed, requiring monthly payments of less than the full amount due. The balance carried forward is subject to a finance charge. Also, an arrangement whereby credit is extended up to a specified limit and for a specified period with a fee charged for the commitment. Also called open-end credit or revolving line of credit.
Credit that is extended by a creditor under a plan in which (1) the creditor contemplates repeated transactions; (2) the creditor may impose a finance charge from time to time on an outstanding unpaid balance; and (3) the amount of credit that may be extended to the consumer during the term of the plan is generally made available to the extent that any outstanding balance is repaid.
Credit accounts that have a pre-established line of credit. The account balance decreases as payments are made and increases as new purchases or cash advances are added.()
A type of credit that allows the borrower/customer to make charges against a predetermined line of credit. The customer then pays monthly installments on the amount borrowed, plus interest.
Debt that once payments are made still allows you to spend against. Credit cards and HELOCs fall into this category. As you make payments against recent purchases and free up your balance, you can then spend against that newly available balance.
Credit that enables a someone to borrow against a preapproved line of credit to purchase goods and services, for which he or she is billed, plus interest.
A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due.
A debt that does not have a fixed payment, although repayment is usually a percentage of the outstanding balance and made at regular intervals; most common are credit cards issued by banks and department stores.
An arrangement for credit in which the customer receives purchases or services on an ongoing basis prior to payment. Repayment is usually at regular intervals but not for a specified amount or term, i.e. charge cards.
A continuous debt that is also known as a balance.
Debt owned on an account that the borrower can repeatedly use and pay back without having to reapply every time credit is used. Credit cards are the most common type of revolving debt.
A credit arrangement that allows a customer to borrow against a pre-approved line of credit used to purchase goods and services. The borrower is responsible for the actual amount borrowed plus any interest due.
Debt that typically has a variable interest rate, an open-ended term, and payments that are based on a percentage of the balance. The debt has a set limit agreed upon by the lender and borrower.
