Which type of credit allows the amount of credit extended to be increased at any time without a fixed repayment period?

Open-end credit is a type of credit that allows borrowers to withdraw funds up to a certain limit at any time, and the amount of credit available can be increased based on the creditworthiness of the borrower. It is characterized by its lack of a fixed repayment period—borrowers can make minimum payments and revolve the remaining balance, borrowing again without the need for a new application or credit check. This flexibility is commonly seen in credit cards and lines of credit, where borrowers have a continuous line of credit that they can use repeatedly as they pay down the balance.

In contrast, closed-end credit refers to loans for a fixed amount with a set repayment schedule, where the borrower receives the total loan amount upfront and must repay it according to agreed terms. Unsecured credit, while it can be open-end (like a credit card), does not inherently dictate that credit is available for repeated use or without fixed repayment terms. Secured credit involves collateral that the lender can claim if the borrower defaults, and it can also be offered in a closed-end format, making it distinct from the more flexible nature of open-end credit.