Types of Credit Card Loans

Debit card

A debit card allows you to access funds in your checking or savings account. It is accepted wherever the logo on the card is displayed. This is not a loan and using it does not establish a credit history.

Credit card (revolving account)

A credit card allows you to make purchases or take cash advances and pay back a portion of the balance you owe each month with interest. The minimum payment due is usually a percentage of the outstanding balance. Most credit cards charge other fees (i.e. cash advance fee, late payment fee, annual fee) in addition to interest.

Charge card (open-ended account)

A charge card allows you to purchase items or take cash advances and requires you to pay the entire balance in full each month. No interest will occur if the balance is paid as agreed, but there is often an annual fee. Other fees may also apply (late fees, cash advance fees, etc.).

Installment Loan (close-ended account)

An installment loan allows you to borrow the money you need up front (usually for a specific purchase such as a car, education, home, etc.) and then repay it over a specified period of time with interest. The payment is usually the same amount every month.