Open-End Credit


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Related to Open-End Credit: credit facilities

Open-End Credit

A type of revolving account that permits an individual to pay, on a monthly basis, only a portion of the total amount due.

This type of Consumer Credit is frequently used in conjunction with bank and department store credit cards.

References in periodicals archive ?
The cost of open-end credit is given by the after-tax interest rate R, and |Rho^ is the subjective time-discount factor.
This improvement would have been more significant, but was hampered by a higher allowance associated with the company's open-end credit product in Virginia and the developing automotive sales and finance business.
34--Prohibited Acts or Practices in Connection with Credit Secured by a Consumer's Dwelling; Open-end Credit is added; and
This improvement reflects lower returned items and a better collection rate quarter-to-quarter, partially offset by a higher allowance associated with the company's new open-end credit product in Virginia and the developing automotive sales and finance business.
Regarding these additional disclosures, the Board recognizes the value of ensuring that consumers better understand the implications of making minimum payments on open-end credit plans.
A consumer home loan is defined as a loan, including an open-end credit plan but excluding a reverse mortgage loan, that is incurred by the borrower primarily for personal, family, or household purposes, and is secured by a mortgage or deed of trust upon real estate on which there is located or will be located a structure(s) designed principally for occupancy of from one to four families and that is or will be occupied by the borrower as the borrower's principal dwelling.
For example, there are separate rules for closed-end credit, such as automobile or home mortgage loans, and for open-end credit, such as credit cards or home equity lines of credit.
Under the current Truth in Lending Act, creditors that mention specific costs in advertisements for any type of open-end credit product must also disclose other relevant cost information.
High-cost home loans are defined by the Act as loans in which the principal balance at consummation is between $15,000 and $200,000; which are secured by residential real property that is or will be occupied by the borrower as the borrower's principal dwelling; and which are not an open-end credit plan or reverse mortgage.
Before the enactment of HELCPA, home equity credit plans were treated like other types of open-end credit plans for purposes of account disclosure and advertising rules under Regulation Z.
The Department of Financial Institutions (DFI) today announced that they have responded to AB 865 (Chapter 711, Statutes of 2001), which requires a credit card issuer to provide cardholders information regarding the length of time it will take to pay off the balance due on an open-end credit card account.
a 60-day interest-free deferral on open-end credit lines;