Question

What is true about the payments with closed-end credit?

Answer 1

With closed end credit the payments normally remain the same until the loan is paid off. Car loans and home mortgages are typically closed end credit.

Answer 2

Answer: The loan or credit remains the same until it is paid off.

Explanation:

Closed-end credit refers to a type of credit which the borrower must repay in a specified number of equal payments. The credit can only be used once because after repaying the balance, it cannot be used again. Closed-end credit repayment time period is expressed in months. It allow the borrower to achieve a good credit score image and demonstrate that he or she is creditworthy.