 TITLE: What Is Credit? CONTENT: What Are the Types of Credit?\n-----------------------------\nThere are four types of credit:\n*   **Revolving credit**: With revolving credit, you are given a maximum borrowing limit, and you can make charges up to that limit. You must make a minimum payment each month, but otherwise the amount you pay can be any portion of your outstanding charges, up to the full amount. If you make a partial payment, you will carry forward the remainder of your balance, or revolve the debt. Most credit cards count as revolving credit.\n*   **Charge cards**: Once commonly issued by retailers for use exclusively in their establishment, charge cards are relatively rare these days. Charge cards are used in much the same way as credit cards, but they don't permit you to carry a balance: You must pay all charges in full every month.\n*   **Service credit**: Your contracts with service providers such as gas and electric utilities, cable and internet providers; cellular phone companies; and gyms are all credit agreements: These companies provide their services to you each month with the understanding that you will pay for them after the fact. Modern credit scoring systems, including the most recent versions of the FICO® Score and VantageScore, can factor your service payment history into your credit scores, but those payments are not always reported to the credit bureaus. The Experian Boost™† program enables you to share utility and cellphone payment records so they can be considered in credit scores based on Experian data.\n*   **Installment credit**: Installment credit is a loan for a specific sum of money you agree to repay, plus interest and fees, in a series of equal monthly payments (installments) over a set period of time. Student loans, car loans and mortgages are all examples of installment credit. END