The consumer is using non-revolving credit. Non-revolving credit refers to loans with fixed payments and a set term, such as a car loan, where the balance decreases with each payment until it is paid off. Revolving credit, on the other hand, allows the borrower to borrow again once they repay their balance, such as with credit cards.
If a consumer makes monthly payments of $250 to pay off a car loan, what type of credit is she using?
(1 point)
O non-revolving
O
revolving
O short term
unsecured
1 answer