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Detailed explanation-1: -Open-end credit also is referred to as a line of credit or a revolving line of credit. Open-end loans, like credit cards, are different from closed-end loans, like auto loans, in terms of how the funds are distributed and whether a consumer that has started to pay down the balance can withdraw the funds again.

Detailed explanation-2: -Open-end credit, also called revolving credit, gives you a specific limit of credit and the ability to borrow as much or as little of that money. You repay any amount you used below your set limit within a specified period.

Detailed explanation-3: -Unlike open-end credit, closed-end credit does not revolve or offer available credit. Also, the loan terms cannot be modified. With closed-end credit, both the interest rate and monthly payments are fixed.

Detailed explanation-4: -Revolving credit lets you borrow money up to a maximum credit limit, pay it back over time and borrow again as needed. Credit cards, home equity lines of credit and personal lines of credit are common types of revolving credit.