TILA Mortgage Loan Officer Practice Test 2026 - Free Mortgage Loan Officer Practice Questions and Study Guide.

A revolving account is best defined as open-end credit, which allows borrowers more flexibility in how they use their available credit. With a revolving account, such as a credit card, a borrower can spend up to a certain limit, repay all or part of the borrowed amount, and then borrow again as needed. This type of credit does not have a set repayment schedule like fixed installment loans, making it ideal for those who may require access to funds over time for various expenses. The borrower can continuously draw from this line of credit as long as they remain within the credit limit and make payments as agreed.

In contrast, fixed installment loans, second mortgages, and personal loans typically involve borrowing a specific amount of money with a defined repayment schedule and term, which does not provide the same ongoing access to funds once the loan is repaid. Therefore, open-end credit is the characteristic that defines a revolving account.