The 3 types of credit are: revolving, installment and open accounts. Their characteristics are as follows:
Revolving accounts - The most common example of a revolving account is the credit card. These type of accounts involve different payments each month, depending on how much credit is used. The key factor here is that you're only required to pay a minimum amount of your balance each month. If you choose to do so, then the remaining balance will be rolled over (or revolved, if you will) into the next month (and be subject to a higher interest rate in most cases).
Installment accounts - These refer to any sort of loan on your credit report. As opposed to a revolving accounts, these require you to pay a fixed sum each month based on factors such as total amount borrowed, the time period of the loan, and the decided upon interest rate.
Open accounts - The most common examples are utilities accounts and cell phone contracts. Every open account has a fixed balance that is to be paid in full each month. As opposed to both revolving accounts or installment accounts, these usually don't charge any interest. Because of this, these accounts will not always be present on your credit report. Companies that choose to do so will only report delinquencies in most cases.
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