Types of Credit
Credit cards allow you to purchase goods or services with the use of a credit account which are borrowed funds to spend as you wish and to be paid off regularly. You usually do not have to pay any interest as long as you pay the full amount by each due date. Before you spend using a credit card, you should be sure you can repay the amount on time, as some credit cards can have very high interest rates.
Personal lines of credit
A personal line of credit allows you to have money available when you need it. This often has a low interest rate, and the borrower can choose to use the entire credit limit at once or use it in smaller increments. This can be perfect for meeting ongoing credit needs such as renovating your home. A personal line of credit for an approved amount means that you do not have to keep going back to the back for approval for each small amount you want to borrow on credit.
Installment Loans allow you to buy a car or big ticket item and then pay back the amount owing at regular intervals. Installment Loan payments are usually fixed payments that have the same amount per payment payable monthly. Installment Loans are usually set for a specific period with principal and interest included in the payments and payable until the loan is paid in full. There are many different installment loans with varying types of repayment plans.
Mortgages allow you to buy a house and then pay back the amount owing at regular intervals. Mortgage payments may vary in the amounts per payment. There are many different kinds of mortgages available with varying types of repayment plans.