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Question
Eddie has a credit card on which he makes monthly payments and tries not to carry a balance. What kind of credit is this? Select all that apply.
(1 point)
Responses

non-revolving
non-revolving

revolving
revolving

secured
secured

unsecured
unsecured

flexible

1 answer

Eddie's credit card usage can be classified as follows:

  • Revolving: Credit cards are typically considered revolving credit because they allow the borrower to make purchases up to a certain limit, repay those charges, and then borrow again.

  • Unsecured: Most credit cards are unsecured, meaning they are not backed by collateral. The card issuer extends credit based on the cardholder's creditworthiness.

Thus, the applicable selections would be revolving and unsecured.