Which type of credit allows you to carry a balance from month to month?

Revolving credit is a type of credit that enables you to carry a balance from month to month. This means that you can borrow up to a certain credit limit, and you have the flexibility to pay back a portion of that balance at any time. When you carry a balance, interest may accrue on the unpaid amount, and you can continue to use the credit as long as you stay within your limit and make at least the minimum required payment each month.

This form of credit is commonly associated with credit cards, where you are not required to pay the full balance at the end of each billing cycle, allowing for ongoing access to funds without needing to reapply for a loan. This flexibility can be beneficial in managing cash flow, but it is important to monitor spending and repayment to avoid accumulating debt.

Other options, such as single-payment credit, installment credit, and open credit, do not include the ability to carry a balance in this manner. Single-payment credit requires the total amount to be paid back in one lump sum by a certain date. Installment credit involves borrowing a set amount and paying it back in equal installments over a specified period, with no option to roll over the remaining balance. Open credit generally requires payment in full within the terms