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Whats the difference between a revolving line of credit and a closed-end loan?

April 26, 2017closed-end difference line of credit loan revolving

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Whats the difference between a revolving line of credit and a closed-end loan?

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With a closed-end loan you receive all of your loan proceeds up front in a lump sum and your monthly payments are fixed for the duration of the loan term. With a revolving loan you receive a credit line in which you can write checks to borrow up to your available credit limit at any time during the life of the loan. The rate is usually an adjustable rate. Your payments will vary depending on your outstanding balance and the current interest rate.