Open end credit is an agreement by a lender to lend a specific amount to a borrower and to allow that amount to be borrowed again once it is repaid. This is also known as a revolving line of credit.
Some examples of Open end credit include:
- Credit Cards
- Home Equity Credit Lines
- Store Specific Credit Cards
There is often a finance charge associated with open end credit on the unpaid balance of the account. The size of the finance charge is generally agreed upon in writing before the open end credit account is issued. It is a good idea to review every bill from each business you have open end credit with. Make sure that every charge was authorized and all the amounts are correct.