What is the difference between installment and noninstallment credit?

Installment credit is a type of credit that is paid out over a fixed period of time, usually with fixed monthly payments. With installment credit, there is a generally a set amount borrowed, a defined repayment term and fixed interest rate. Noninstallment credit, sometimes referred to as revolving credit, allows the borrower to borrow a certain amount of money at any given time and then have the choice to pay off the total balance, or continue to make payments in order for the balance to be paid off over time. With noninstallment credit, there is typically not a fixed repayment term and the interest may fluctuate depending on the balance.