Credit Basics – What exactly is Credit?
Credit, in financial terms, is defined as:
- “A means of borrowing money from a person or company and returning it at a later date, usually with accrued interest charged on top of the initial sum borrowed.”
- “A privilege granted for the purpose of extending time to make payment on a debt.”
- “The promise to pay in the future in order to buy or borrow in the present. The right to defer payment of debt.”
- “An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.”
- “Reputation for