What is NOT a characteristic of open-end credit?

Open-end credit, commonly known as revolving credit, allows individuals the flexibility to borrow money up to a predetermined limit without having to reapply each time they want to use it. This type of credit is characterized by a revolving balance, where borrowers can utilize funds as needed and make minimum payments based on their outstanding balance.

The correct answer indicates that the necessity to reapply for credit each time is not a characteristic of open-end credit. This means that once an individual has been approved for a line of credit, they can continuously draw from it, repay it, and borrow again without going through the application process multiple times. This feature is a significant advantage of open-end credit, as it offers convenience and access to funds whenever needed without the hassle of reapplication.

In contrast, other forms of credit, such as closed-end loans, would require borrowers to apply for a new loan every time they need additional funds after they have paid it off.