Open-end Credit

A line of credit that may be used repeatedly, up to a certain limit, also called a charge account or revolving credit. This type of credit allows a borrower to withdraw funds only up to a pre-approved credit limit. Generally credit cards are the type of revolving credit borrowers use. Borrowers then make payments based solely on the amount they've actually charged to their revolving account/credit card, plus interest.

Back To Debt Glossary