which would be considered closed - end credit situations? check all that apply. jason bought a used car and…

which would be considered closed - end credit situations? check all that apply. jason bought a used car and got a loan from his credit union. the overtons bought a new home and mortgaged it for 30 years. samantha got her first credit card at age 18 with a credit limit of $300. tammy borrowed $40,000 in school loans to be paid back in 5 years. tim always pays his credit card balance in full each month.

which would be considered closed - end credit situations? check all that apply. jason bought a used car and got a loan from his credit union. the overtons bought a new home and mortgaged it for 30 years. samantha got her first credit card at age 18 with a credit limit of $300. tammy borrowed $40,000 in school loans to be paid back in 5 years. tim always pays his credit card balance in full each month.

Answer

Brief Explanations:

Closed - end credit is a type of credit where the borrower receives a fixed amount of money and repays it in installments over a set period. A car loan, home mortgage, and school loan are examples of closed - end credit as they have a specific amount borrowed and a defined repayment period. A credit card is open - end credit as it allows for repeated borrowing up to a credit limit. Paying a credit card balance in full each month does not change the nature of the credit card as open - end credit.

Answer:

  • Jason bought a used car and got a loan from his credit union
  • The Overtons bought a new home and mortgaged it for 30 years
  • Tammy borrowed $40,000 in school loans to be paid back in 5 years