Question

When she uses her american express card, cathy obtains possession of goods and services when they are purchased. payment is due when billed at a later date. american express is a type of: revolving charge account open charge account installment charge account selective charge account?

Answer 1

American Express credit cards and credit cards in general are a type of revolving charge account. Credit cards are regarded as a revolving charge account or revolving credit because if the balance is not paid off by the period specified, it will roll over to the next period (and collect interest), thus "revolving" into the next period. This is how the debt compounds if you are not responsible with your credit cards.