Which of the following is NOT a type of credit?

Equity credit, which is often associated with home equity loans or lines of credit, is not typically classified under the standard types of credit. The major types of credit include revolving credit, installment credit, and single-payment credit, each of which has distinct characteristics and uses.

Revolving credit allows consumers to borrow up to a certain limit and repay it as they wish, such as with credit cards, while installment credit involves borrowing a fixed amount of money that is paid back in regular, scheduled payments, like with auto loans or mortgages. Single-payment credit requires the borrower to repay the borrowed amount in full after a short period, often seen in situations like payday loans.

In contrast, equity credit refers specifically to borrowing against the equity of an asset, typically a home, which is a more specialized kind of financial product rather than a general type of credit consumer can access easily. This distinction highlights why equity credit does not belong in the main categories of credit.