Noninstallment credit is the simplest form of credit.
Noninstallment credit is usually very short term, such as thirty days.
Noninstallment credit enables consumers to take possession of property today and pay for it within a month or so. Installment closed-end credit is also used by department stores. A particular amount of money is lent to the consumer, typically the total purchase price of the goods purchased and no more. For example, if you purchase a sofa and chairs at a furniture store, the store might give you credit up to the full amount of the sale, which will be repaid with interest, but the store does not make further credit available to you under that agreement. The full amount of the principal and interest must be paid within a pre-determined time period.