The concept can also be extended to the historical barter system which involved direct exchange of goods and services. In recent times of course, credit is mainly used as a financial term.
Generally, in return of the facility to repay later the borrower has to pay an additional amount in addition to the amount borrowed. This cost of credit depends on the amount of resources borrowed and the time span for which the money is borrowed. The interest is calculated according to some generalized rules.
There are many types of credit: Bank Credit. Consumer Credit. Public Credit. Investment Credit. Real Estate Credit
It is enlightening to know that personal loans, mortgages, credit cards and automobile finance are all categorized under Consumer Credit. As such, if you are intending to get a car credit to meet the bit of crunch in your pocket, you will be listed as a creditor under … Read the rest