What is Open-End Credit in Retail? Explained

Open-end credit in the financial context is a line of credit that allows borrowers to repeatedly borrow funds up to a predetermined limit. Unlike traditional loans with fixed amounts, open-end credit, commonly associated with credit cards or revolving lines of credit, provides flexibility for borrowers to use and repay funds within the established credit limit. Users are billed periodically, and the repaid amount becomes available for borrowing again. This financial arrangement offers ongoing access to funds, with interest charged on the outstanding balance, and is characterized by its flexibility and revolving nature.