What is the difference between installment and revolving credit accounts?

Installment loans are loans extended for a specific purpose, a specific time, and a specific rate of interest. Normally the buyer signs a security agreement giving the lender the right to take back the property being purchased in the event the borrower does not pay in full. Installment loans are used for major purchases such as homes, cars, major appliances, recreational vehicles, expensive furniture and other high value items. In the normal course of events installment loans involve monthly payments. At the end of the prescribed time the installments (payments) have been made as agreed, the loan balance is zero, and the buyer owns the property free and clear.