What is an example of closed-end credit?
A closed-end loan is to be contrasted with an open-ended loan where the debtor borrows multiple times without a specified repayment date like with a credit card. Examples of closed-end loans include a home mortgage loan, a car loan, or a loan for appliances.
Which is an example of closed-end credit quizlet the cost of credit?
An example of closed end credit is a car loan. Service credit is when a service is provided in advance and you pay later.
Is a title loan an example of closed-end credit?
Generally, real estate and auto loans are closed-end credit. Conversely, home equity lines of credit (HELOC) and credit cards are examples of open-end credit. Open-end credit agreements are also sometimes referred to as revolving credit accounts.
What is a closed end line of credit?
Closed-end credit includes debt instruments that are acquired for a particular purpose and a set amount of time. At the end of a set period, the individual or business must pay the entirety of the loan, including any interest payments or maintenance fees.
Which is an example of closed-end credit Edgenuity quizlet?
Which is an example of closed-end credit? an agreement with an institution on a certain amount that can be repeatedly borrowed. The table shows a schedule of Mr. Kirov's plan for paying off his credit card balance.
What is closed-end credit quizlet?
Closed-end Credit. A loan where the entire amount is loaned at the beginning and all repayment and interest must be repaid by a specific date. Collateral. Something of value (often a house or a car) pledged by a borrower as security for a loan.
What are 3 types of closed-end credit?
There are three main types of credit: installment credit, revolving credit, and open credit.
What is one type of closed-end credit quizlet?
One common type of closed-end credit is: Installment cash credit.
Is a student loan a closed-end credit?
Loans are close-ended credit lines with set payback amounts and term lengths. A student loan of $10,000 with an estimated interest payment of $2,000, for example, would be paid back in 10 years with payments of $100 per month.
What is open end credit quizlet?
Open end credit. A pre-approved loan between a financial institution and borrower that may be used repeatedly up to a certain limit and can subsequently be paid back prior to payments coming due. The pre-approved amount will be set out in the agreement between the lender and the borrower. Annual percentage rate.
Is a car loan open end credit?
Car loans are not open-end credit, since open-end credit refers to accounts that you can spend and repay in various amounts as many times as you want. This category includes: Lines of credit. Credit cards.
How do people use closed-end credit?
On closed-end credit, you'll have a fixed payment that allows you to pay off your balance with a set amount each month, which may make budgeting easier. The monthly payments for closed-end credit are typically higher than the monthly payments for open-end credit, even for the same borrowed amount.
Answer
A closed-end credit is a loan in which the amount is borrowed all at once and the total balance with the interests have to be paid in a specific date. The terms on the loan depend on the borrower's credit rating and it is used for buying expensive things like cars and real estate. Because of this, an example of closed-end credit is a home loan.
New questions in Mathematics
The graph of f (x) = 6 (0.25)x and its reflection across the y-axis, g (x), are shown. On a coordinate plane, 2 exponential functions are shown. Function …
