Having a service performed and paying for it later (ex. Telephone, power, cable)

• A. Service Credit
• B. Open-Ended Credit
• C. Installment Loan
• D. Layaway Plans

Answer: (A)

This item is about how you pay for services after you’ve used them. When a provider lets you receive a service—like phone, electricity, or cable—and bill you later, that arrangement is service credit. It matches the scenario because the service is performed first, and payment comes after.

Why this fits best: you’re not taking out a loan to be repaid in regular installments for a specific financed amount, as with an installment loan. You're not paying in advance to reserve or receive goods, as with layaway. And you're not using a revolving line of credit that you can draw on repeatedly, as with open-ended credit. Instead, you’re receiving a service now and paying the resulting bill later, which is exactly what service credit describes.