*The Importance Of CREDIT*

The Main Types Of Credit


  • Charge accounts
  • Credit cards
  • Installment sales credit
  • Consumer loans

The Advantages and Disadvantages Of Using Credit

Advantages:

  • Keeping business separate from personal expenses
  • Minimizes record-keeping and receipts
  • Keeps track of what employees are spending
  • Earn rewards
  • It establishes favorable credit ratings
Disadvantages:
  • Overuse of credit
  • Experience theft of customer records
  • Overbuying by employees

Business grant credit by using a credit application in order to grant a credit

Credit documents are credit contract & statement of account.

A credit document is used to determine if a business is guaranteed to receive a full payment just as long as they don't break an agreement.

It's important to know the uses of the different types of credit documents so that people wouldn't get confused of which one to use for the type of credit documents they would use.

Credit regulations:Truth in Lending Law, Fair Credit Billing Act, Equal Credit Opportunity Act ,Fair Credit Reporting Act, Fair Debt Collections Act, Consumer Credit Reporting Reform Act.

Credit assistance available:Debt repayment plan, Credit counseling, Bankruptcy.

It's helpful to know the regulations and assistance available so that people wouldn't run out of money, or make a mistake and if they did run out of money they would be able to count on the credit assistance that are available to them.