Credit and Bankruptcy LawIntroduction |
Are there different types of credit? |
Yes, sometimes a loan agreement requires that the debtor pay off the full balance within a certain amount of time. Other credit arrangements are referred to as open-end credit, which is a revolving door type of credit. The debtor must make regular payments and has a credit limit, but must make payments in a timely fashion or risk additional charges. Most credit cards involve this type of revolving credit.