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Are there varying types of credit? If so, what are they?

Are there varying types of credit? If so, what are they?

Yes. There are three general types of credit:

Revolving credit - Where you borrow money up to your credit limit and pay it back in one lump sum or make minimum monthly payments with interest, e.g., Visa and MasterCard.

Charge credit - Where you borrow money up to your credit limit and are not able to make partial payments. With charge credit, you are required to pay back the full amount at the end of the month.

Installment credit - Granted to you to make a one-time purchase. You pay back your debt within a predetermined period of time at a specified interest rate, e.g., mortgage payment.

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