Understand the Difference between Revolving Credit and Installment Credit
If we try to divide the credit or loan repayment, it can be fundamentally divided into two types: revolving credit and installment credit. In this post, we will be going to discuss these two types of loan options. Installment Credit Installment credit is a type of lending option in which you have to repay the loan amount in monthly or weekly installments as per the predefined schedule. You have to make the periodic payments, and the full repayment ends the credit cycle. In this type of loan, you lend a certain amount from your financing institution or lender and repay the loan in installments. Personal loans, home loans, and private installment loans in Canada are some examples of installment credit. Revolving Credit Revolving credit is a type of lending option that offers you flexibility in the term of repayment and replenishes the credit limit as soon as you pay the existing debt. In this type of lending option, you do not borrow an upfront amount; instead, get a line of cre