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Is a auto loan a installment loan or a revolving credit?

User SnowYetis
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Final answer:

An auto loan is an installment loan, not a revolving credit. It is repaid over a fixed term with regular payments.

Step-by-step explanation:

An auto loan is considered an installment loan, not a revolving credit.



An installment loan is a type of loan that is repaid over a specific period of time with a set number of equal payments, called installments. With an auto loan, you borrow a specific amount of money to purchase a vehicle and then repay the loan in monthly installments over a fixed term.



On the other hand, a revolving credit is a type of credit that does not have a fixed term or monthly payments. It allows you to borrow up to a certain credit limit and make payments based on the amount you have borrowed. Credit cards are an example of revolving credit.

User Andy Williams
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