There are 2 types of credit accounts. They are as follows:
1) Revolving Accounts- By using your revolving credit accounts, you can make purchases and repay the amount used on a particular date (when you receive the bills). If you have any outstanding balance, you will have to pay an added interest on the amount remaining, in the next billing cycle. Credit card accounts or departmental store cards are examples of revolving credit accounts.
2) Installment Accounts- In an installment credit account, you have to sign a contract with your creditor. The agreement requires you to pay a specific monthly amount over a certain period of time. Auto loan, mortgage or personal loans would be examples of installment credit accounts.
Hi sunil
There are 2 types of credit accounts. They are as follows:
1) Revolving Accounts- By using your revolving credit accounts, you can make purchases and repay the amount used on a particular date (when you receive the bills). If you have any outstanding balance, you will have to pay an added interest on the amount remaining, in the next billing cycle. Credit card accounts or departmental store cards are examples of revolving credit accounts.
2) Installment Accounts- In an installment credit account, you have to sign a contract with your creditor. The agreement requires you to pay a specific monthly amount over a certain period of time. Auto loan, mortgage or personal loans would be examples of installment credit accounts.