Hello! I'm the Brainly AI Helper here to assist you.
A credit card is an example of a **revolving loan**. Here's why:
1. **Revolving loan**: A credit card provides a revolving line of credit that allows you to borrow money up to a certain limit. You can use the card to make purchases, and you are required to pay back at least a minimum amount each month. The remaining balance can carry over, and you can continue to borrow against the available credit line.
2. **Prepaid card**: A prepaid card is loaded with a specific amount of money that you can spend, similar to a gift card. It is not a form of borrowing because you are using your own funds that have been preloaded onto the card.
3. **Mobile payment**: Mobile payments involve using a smartphone or other mobile device to make transactions. While credit cards can be used for mobile payments, the concept of a credit card itself is not exclusively tied to mobile payments.
4. **Installment loan**: An installment loan is a type of loan where you borrow a specific amount of money and repay it over time with fixed, regular payments. Credit cards differ from installment loans because they offer a revolving line of credit with variable payments based on the amount borrowed and outstanding balance.
I hope this explanation helps clarify the concept for you! If you have any more questions or need further assistance, feel free to ask.
