Which statement accurately defines revolving credit and installment credit and gives one example of each?

• A. Revolving credit has a fixed payment over a term; installment credit has a variable balance.
• B. Both revolving and installment credit have fixed payments and the same structure.
• C. Revolving credit has a credit limit and a variable balance; installment credit has fixed payments over a term.
• D. Revolving credit is only used for mortgages.

Answer: (C)