A monthly heating bill is an example of which type of credit?

A monthly heating bill is classified as single-payment credit because it typically requires the borrower to pay the total owed in a single payment each month. This type of credit does not involve making ongoing payments over time, which is characteristic of installment credit. Instead, the borrower receives a statement detailing the amount owed for the heating usage during the billing period and is expected to pay that amount in full by the due date.

In contrast, installment credit involves borrowing a set amount and repaying it over time with scheduled payments, while revolving credit allows for borrowing within a certain limit, with the option to repay and borrow again as needed. Secured credit is backed by collateral, which is not a feature of a heating bill. Thus, identifying the monthly heating bill as single-payment credit accurately reflects its billing structure and payment requirements.