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What is an open ended account?
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Last Updated
6th of October, 2009

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An open-ended credit account, also known as a revolving account, is is a type of account where the consumer’s balance and monthly payment fluctuate. This type of credit account has a predetermined credit/spending limit.

An open-ended account doesn’t close just because the account has a zero balance. It remains open until the lender or the consumer chooses to close it.

Credit cards are the primary type of revolving credit. For example, if Amy has a Visa card issued by her bank with a $10,000 credit limit, she can go out and charge up to $10,000 worth of products or services. If Amy purchased a $1,000 television using her Visa card, she would receive a bill for that amount at the end of her billing cycle. The next month, the balance would likely be different.

Other examples of revolving credit are home equity lines of credit (HELOCs), retail store credit cards, gas station cards, and some forms of American Express cards.

Not sure where you stand? Check your credit reports and scores online today!

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