We are constantly urged to accept credit card offers or purchase items on credit.
Credit allows customers to purchase something immediately and pay for it later.
The money is borrowed from creditors and the customer can pay the creditor over time, rather than paying at the time of purchase. An open-end credit account is one under which you can make repeated purchases or obtain money. You can either pay the balance in full or in installments. For example, if you purchased a new air conditioner with a credit card, that purchase is part of an open-end credit plan. You could use the same card at a later date to purchase something different and not have to enter into a new agreement with the creditor.