Credit cards, personal or business lines of credit and home equity lines of credit are examples of which type of credit?

• A. Examples of installment credit
• B. Examples of credit limit
• C. Examples of revolving credit
• D. Examples of predatory lending

Answer: (C)

Revolving credit lets you borrow up to a set limit, repay, and then borrow again. That ongoing access is what makes credit cards, personal or business lines of credit, and home equity lines of credit fit this type. You can carry a balance from month to month, paying interest on the outstanding amount, and your available credit rises again as you repay. You don’t have to repay the full balance each month, and you can reuse the credit without reapplying.

This differs from installment credit, where you borrow a fixed amount and repay it in scheduled, equal payments over a set term. The other options aren’t types of credit—credit limit is just the maximum you can borrow under an agreement, and predatory lending is a harmful practice, not a kind of credit.