Installment credit is the usual way to pay for a car or make other major purchases. Unsecured lines of credit from banks and other financial institutions are revolving credit lines that you apply for and get once, and then use over and over again as needed. Interest rates are usually lower than for installment loans or credit cards, and you don't have to pledge collateral. Usually you get special checks or a credit card to use when you want to draw on the credit line. You can use the credit line up to a specified limit, and the credit becomes available to you again as you pay off the balance.
Student Loans Graduating from college with student loan debt is common today.
Your student loans are serious commitments, and you need to be sure you pay them off on schedule. Credit Problems Be careful not to get into trouble with credit. You're using cash advances from credit cards to pay other creditors. You're always late with bill payments. You don't know how much you owe.