What are the different types of consumer credit?

Consumer credit encompasses various financial products, including credit cards, car loans, personal loans, student loans, mobile home loans, and home improvement loans. Notably, consumer credit involves smaller loans without collateral, distinguishing it from larger loans like mortgages.

What is consumer credit?

Consumer credit refers to credit extended to consumers through credit cards, lines of credit, and loans. Outstanding credit is repaid over time, usually with interest.

How is consumer credit categorized?

There are two broad ways consumer credit is categorized: how it's paid back (revolving vs. installment), and whether it requires collateral (secured vs. unsecured). The credit types you use—whether it's personal loans, credit cards or mortgages—fit into these categories.