Open Account Credit

From Financial Literacy Wiki

Open Account Credit is a credit facility that is offered by retailers or financial institutions that allow you to borrow up to a predetermined amount to pay for your purchases. Hence, you enjoy the convenience of not carrying too much cash. You do not have to pay for the goods or services you purchase immediately but instead pay for them at a later date. The credit remains available as long as you do not exceed the credit ceiliing and you make prompt payments as stipulated in the credit agreements. This credit facility is usually offered for numerous small purchases, in terms of value, thus there is no need to provide collaterals for it.