A(n)_____ credit is a credit agreement that allows the borrower to pay all or part of the balance at any time; as the loan balance is paid off,it becomes available to be borrowed again.

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A revolving credit line allows the borrower to access funds up to a certain credit limit repeatedly as long as the borrower pays off some or all of the outstanding balance. As the borrower repays the balance, more credit becomes available. This type of credit is commonly found in credit cards and home equity lines of credit. Installment credit, on the other hand, is a loan with a fixed amount borrowed, interest rate, and repayment schedule. The borrower repays the loan amount plus interest in a series of regular payments, usually over a fixed period of time. Social and primary credits are not financial terms.

A(n)_____ Credit Is a Credit Agreement That Allows the Borrower