Revolving credit vs. installment credit: what's the difference? | Financial Literacy | Khan Academy

Smart Finance
Smart Finance
3 Video Views·Sep 11, 2026

"Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now!
https://www.khanacademy.org/college-c...

Revolving credit is when you can borrow money up to a certain limit and pay it back as you wish, like using a credit card. Installment credit is a loan with a set amount of money that you pay back in fixed payments over time, like a car loan or a mortgage.

Khan Academy is a nonprofit organization with the mission of providing a free, world-class education for anyone, anywhere. We offer quizzes, questions, instructional videos, and articles on a range of academic subjects, including math, biology, chemistry, physics, history, economics, finance, grammar, preschool learning, and more. We provide teachers with tools and data so they can help their students develop the skills, habits, and mindsets for success in school and beyond. Khan Academy has been translated into dozens of languages, and 15 million people around the globe learn on Khan Academy every month. As a 501(c)(3) nonprofit organization, we would love your help!

Donate or volunteer today! Donate here: https://www.khanacademy.org/donate?ut...

Volunteer here: https://www.khanacademy.org/contribut..."