Open vs. Revolving vs. Installment
Classifying products correctly to set expectations for payments and balances.
Updated 8/14/2025 · 1 min read
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Product taxonomy
Open accounts require payment in full each cycle, revolving accounts allow balances, and installment loans amortize over a fixed term. Accurate classification supports clear consumer disclosures.
Validation impacts
Open/revolving lines usually require a credit limit; installment/mortgage require original amount. Status and past-due behaviors differ across types.
Last updated
8/14/2025