Closed-End Credit

What Does Closed-End Credit Mean?
A loan or extension of credit in which the proceeds are dispersed in full when the loan closes and must be repaid, including any interest and finance charges, by a specified date. The loan may require periodic principal and interest payments, or may require the entire payment of principal at maturity.

Investopedia explains Closed-End Credit
In this type of loan or credit arrangement, the full amount owed must be paid back by the borrower by a set point in time. Most real estate and auto loans are closed-end credit, while credit cards and home-equity lines of credit are open-end or revolving lines of credit.

Related Terms

Amortization
Amortization Schedule
Compound Interest
Consumer Debt
Credit Card
Line Of Credit - LOC
Mortgage
Open-End Credit
Revolving Credit
Simple Interest Bi-Weekly Mortgage
More Related Terms

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