Closed-end credit loans are loans that offer a fixed amount of money to be paid back with interest and fees in an agreed-upon time frame. Interest on closed-end credit loans offer a wide range of dollar amounts that can be loaned, as well as short-term or long-term loans.
Short-term loans are generally offered for a span of fewer than six months. On the other hand, long-term loans generally are more than six months and can last up to thirty years, such as a home mortgage loan.
Closed-end credit loans are very common and widespread throughout the world. As stated above, home mortgages and auto loans are common examples of long-term closed-end credit loans. Installment loans, payday loans, signature loans, and personal loans are common examples and phrases for short-term closed-end credit loans. Extensions on all such loans are sometimes permitted but come with more fees. These are especially common with payday loans.
For information on different types of credit available, visit LiftCredit.com.