Difference in Installment Credit vs. Revolving Credit

There are two kinds of loans that show up on your credit report. One is called installment credit and revolving credit. An installment loan is a loan with an end date in mind. It is also paid in periodic payments. An example of this is a student loan, home loan , or car loan.

A revolving line of credit is like a credit card. There is no end payment in sight if you don’t go ahead and pay your balance off as soon as possible.