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types of accounts help


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Revolving means that it is a line of credit that you can usually charge against or draw funds against. The payments are usually 2% of the outstanding balance and interest is calculated based on carrying a balance from month to month.

Installment is more like a car loan, personal loan, etc. You have a $20,000 car loan for 5 years and the payments are $300 based on 7% (the numbers are made up, but you've got the idea). The loan is closed when the loan is fully paid. You cannot borrow against this loan again. Fixed payment, fixed rate and fixed terms.

Open in terms of a Credit Card means that the account is open and ready for you to use. In terms of a loan, it means that there is a balance owing and payments due.

Hope this helps!

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