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

Answer:

Closed-end credit is a loan for a specific amount that must be repaid in full by a specific date, such as a mortgage or an auto loan. Open-end credit is a line of credit that can be used repeatedly up to a certain limit as long as the borrower continues to make payments, such as a credit card. Both types of credit involve costs including interest rates and various fees charged by the lender.