To what do the terms non-revolving and revolving refer?
(1 point)
Responses
checking accounts
checking accounts
credit
credit
loans
loans
bankruptcy
The terms non-revolving and revolving refer to types of credit.
Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment loans. Examples include credit cards and lines of credit, where you have a credit limit you can borrow against. You can use the funds, repay them, and borrow again up to the limit.
Non-revolving credit, on the other hand, is typically associated with installment loans where you borrow a fixed amount of money and repay it over a set period with a predetermined number of scheduled payments. Examples include auto loans, mortgages, and student loans. Once repaid, you cannot borrow the funds again without applying for a new loan.