USA HISTORY

Detailed explanation-1: -Understanding Consumer Credit Consumer credit is extended by banks, retailers, and others to enable consumers to purchase goods immediately and pay off the cost over time with interest. It is broadly divided into two classifications: installment credit and revolving credit.

Detailed explanation-2: -Installment loans can help improve your credit score by adding on-time payment history to your credit report. They can also broaden your credit mix, which is a credit score factor that considers the types of accounts you own, if you primarily used credit cards in the past.

Detailed explanation-3: -Installment loans are personal or commercial loans that borrowers must repay with regularly scheduled payments or installments. For each installment payment, the borrower repays a portion of the principal borrowed and also pays interest on the loan.

Detailed explanation-4: -Installment credit allows consumers to finance a purchase for a specific purpose over time and can be helpful for large purchases. Common examples include student loans, auto loans, and mortgages. Interest rates on installment loans are typically lower than the rates for revolving credit but still exist.