Definitions
- Describing a type of credit where the borrower can borrow up to a certain limit and pay it back over time, but cannot borrow again once the credit is fully repaid. - Referring to a loan or credit that does not have a fixed repayment schedule. - Talking about a type of credit where the interest rate may change over time.
- Referring to a type of interest rate that remains the same for the entire duration of a loan or credit. - Describing a payment or repayment schedule that is predetermined and does not change over time. - Talking about an asset or investment that has a set value or price that does not fluctuate.
List of Similarities
- 1Both terms relate to financial transactions.
- 2Both can be used to describe loans or credit.
- 3Both can involve interest rates.
- 4Both can impact a borrower's ability to repay debt.
- 5Both can have an impact on a borrower's credit score.
What is the difference?
- 1Repayment: Nonrevolving credit does not have a fixed repayment schedule, while fixed credit has a predetermined payment schedule.
- 2Borrowing: Nonrevolving credit cannot be borrowed again once it is fully repaid, while fixed credit can be borrowed again after it is fully repaid.
- 3Interest: Nonrevolving credit may have a variable interest rate, while fixed credit has a fixed interest rate.
- 4Flexibility: Nonrevolving credit offers more flexibility in terms of borrowing and repayment, while fixed credit is less flexible but provides more stability.
- 5Risk: Nonrevolving credit may be riskier for lenders since there is no fixed repayment schedule, while fixed credit is less risky since the repayment schedule is predetermined.
Remember this!
While both nonrevolving and fixed are related to financial transactions, they differ in terms of repayment, borrowing, interest, flexibility, and risk. Nonrevolving credit allows borrowers to borrow up to a certain limit and pay it back over time, but cannot borrow again once it is fully repaid. It may have a variable interest rate and does not have a fixed repayment schedule. On the other hand, fixed credit has a predetermined payment schedule, a fixed interest rate, and can be borrowed again after it is fully repaid. It is less flexible but provides more stability.
