You’ll find mostly three variety of consumer credit: revolving borrowing from the bank, short-term fund, and you can repayment financing. Credit card issuers is the biggest supply of revolving borrowing, cash advance / pawn shop are definitely the key supplies getting a preliminary-identity mortgage or cash advance, while banks and you will borrowing from the bank unions are definitely the old-fashioned supply to have fees credit.

Due to the fact banking institutions and you will credit unions become an enthusiastic inconvenient method to find that loan, cost funds features typically started restricted to help you big-ticket instructions, eg homes otherwise trucks. Read more