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An Open-end Credit is defined as an agreement with a financial institution that gives a borrower the use of money up to a specified limit or an indefinite time as long as repayment of the outstanding balance and finance charge proceeds on schedule; also known as revolving credit or a revolving line of credit.
Open-end Credit Example
A credit card is an example. It’s a credit agreement that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due.
