Question

What is the difference between open-end credit, and closed-end credit, and what are the costs associated with each?

Answer 1

Answers listed

1. Closed end credit must be paid off by a specific set dat

2. open end credit can be borrowed repeatedly

3. Both of these credits charge interest

4. both may charge fees, and an example would be when minimum payments aren't being made.

this answer is precise and a correct expectation of what the written response should be in the assignment, hope it helps !

Answer 2

Generally, real estate and auto loans are closed-end credit, but home-equity lines ofcredit and credit cards are revolving lines of credit or open-end. ... Closed-end creditis an agreement between a lender and borrower or business.