Open-End Credit

Open-End Credit
A pre-approved loan between a financial institution and borrower that may be used repeatedly up to a certain limit and can subsequently be paid back prior to payments coming due. The pre-approved amount will be set out in the agreement between the lender and the borrower.

Open-end credit is also refered to as a "line of credit" or "revolving line of credit".

Open-end credit agreements are advantageous to borrowers, as they exert more control over how much they borrow and when. In addition, interest is not usually charged on the part of the line of credit that is not used, which can lead to interest savings for the borrower.


Investment dictionary. . 2012.

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  • open-end credit — A type of revolving account that permits an individual to pay, on a monthly basis, only a portion of the total amount due. Dictionary from West s Encyclopedia of American Law. 2005. open end credit A t …   Law dictionary

  • open-end credit — Types of credit extensions that permit borrowers to add to the amount borrowed, usually in irregular amounts, at various times subsequent to the granting of the credit. Examples include credit card loans, personal lines of credit, and home equity …   Financial and business terms

  • open-end credit plan — Credit extended pursuant to a plan providing for and contemplating continuing or repetitive transactions on credit. Town & Country Co op v. Lang, N.D., 286 N.W.2d 482, 487. For purposes of Truth in Lending Act, open end credit plan is one in… …   Black's law dictionary

  • open-end credit — noun a consumer credit line that can be used up to a certain limit or paid down at any time • Syn: ↑revolving credit, ↑charge account credit • Hypernyms: ↑consumer credit • Hyponyms: ↑credit account, ↑ …   Useful english dictionary

  • open-end transaction — Generic term to describe a loose transaction in which the parties may add to or amend the original bargain or agreement. It may include an open end mortgage or open end credit arrangement …   Black's law dictionary

  • open-ended credit — /ˌəυpən ˌendɪd kredɪt/ noun same as revolving credit …   Dictionary of banking and finance

  • Closed-End Credit — 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… …   Investment dictionary

  • open — verb To render accessible, visible, or available; to submit or subject to examination, inquiry, or review, by the removal of restrictions or impediments @ open a case In practice, to open a case is to begin it; to make an initiatory explanation… …   Black's law dictionary

  • credit — The ability of a business or person to borrow money, or obtain goods on time, in consequence of the favorable opinion held by the particular lender as to solvency and past history of reliability. In re Ford, B.C.Wash., 14 F.2d 848, 849.… …   Black's law dictionary

  • credit — The ability of a business or person to borrow money, or obtain goods on time, in consequence of the favorable opinion held by the particular lender as to solvency and past history of reliability. In re Ford, B.C.Wash., 14 F.2d 848, 849.… …   Black's law dictionary

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