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 Consumer Credit.
Keeping pace with the ups and downs of your financial stability, it is not always possible to afford a car entirely with the money in hand. In such circumstances, additional financial assistance is required to cater to your dreams of purchasing a brand new car. If you are still pondering on where to get this assistance from, then be rest assured as there are a plethora of insurance companies that offer credit for the same.
The car insurance companies take into account several factors while judging the rates for an insurance applicant, some of which may be listed as:Present age of the person to drive. Past records of driving. Model of the car for which loan requested. Mileage of the car. Safety criterion associated with the car and so on.
However it is wise for part of the person to borrow credit to get in touch with a reputed and reliable firm to get credit at reasonable rates of interest and to avoid any discrepancies in the future.