Installment Loans vs. Revolving Credit
You are able to think about installment loans being a transaction that is one-time you to definitely borrow a collection quantity, whereas revolving credit—including home equity credit lines (HELOC) and credit cards—is more fluid.
When you’re authorized for a charge card, as an example, you’re given a borrowing limit as you are able to continue steadily to borrow from while you repay your fees.