Consumer credit comes in two common structural flavors: installment and revolving. Installment credit is used for fixed-term loans like auto loans, student loans, and many personal loans; you borrow a set amount and repay with scheduled payments until the balance reaches zero. Revolving credit, by contrast, is typically credit cards or lines of credit where you have a limit, you borrow up to that limit, and you can revolve balances month to month while making minimum payments. Each type behaves differently for budgeting, amortization, and credit scoring: installment loans create predictable amortization schedules and reduce principal over time, whereas revolving accounts can produce fluctuating balances that affect utilization. Recognizing the difference helps you pick the right tool for a financial need.