Question

| 50 POINTS | How Is Open End Credit Different From Closed End Credit ? NO GOOGLE ANSWERS ! Provide Advantages And Disadvantages !

Answer 1

Closed end credit is a type of credit that has to be repaid to the person by a specific timeframe. Types of closed end credits would be car loans or mortgage lending.
Open end credit is loan that is pre approved between the person that is taking out the loan and the company that is giving the loan. Open end credit can also be used a numerous amount of times but up to a certain limit. This must be paid back previous to the payments that are coming due.

Answer 2

Hope I can help you out

With an open-end credit load, you may down pay your loan balance and reuse those funds in the future. All adjustable rate Reverse Mortgage loans that were currently offer are considered open-end credit.
With closed- end credit load, you can pay down the load balance, but you cannot redraw those funds in the future, Today in a store, fixed rate load offerings are considered closed- end credit