Question 12 • 2027 Ignite Financial Literacy-Personal Finance - EL3403
Closed-end credit is a loan for a specific amount that is repaid over a set period. Jason’s car loan, the Overtons’ 30-year mortgage, and Tammy’s school loans each have a defined loan amount and repayment term. A credit card is revolving, open-end credit, whether or not Samantha uses it or Tim pays his balance in full each month.
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