What is the difference between RC, LT, and ME Payment Types?
A. Revolving Credit (RC) Payment Type should be used for credit cards, personal loans, and other accounts which usually have a fixed credit limit. For credit cards, payments and interest charges vary and are both determined on a monthly basis. A short term (5 years or less) personal loan can have a fixed payment and payoff date. A home equity line of credit is another example of RC Payment Type. Long Term (LT) Payment Type should be used for monthly mortgage, car loan, 2nd mortgage, student loans, etc. These accounts usually have a fixed payoff date (typically greater than 5 years) and a fixed payment. Although late charges may apply, they do not usually impact your Loan Balance or Monthly Payment. Monthly Expense (ME) Payment Type should be used for normal monthly expenses including rent, utility bills, phone charges, water, gas, groceries, child care costs, or other monthly charges. These expenses do not have any Interest Amounts or Interest Rates associated with them, although late
