When money needs arise, many Americans turn to financial institutions to take out loans. At the end of 2023, 23.5 million Americans had a personal loan. In addition to this, more than half of American adults do not have a financial safety net. And even an emergency expense of $1,000 can be overwhelming. This data shows Americans’ dependence on different types of loans. However, when applying for a loan, only some understand the difference between an open and closed loan. An open loan is characterized by flexible borrowing and repayment terms. In contrast, a closed-end loan, such as an auto…
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