~The Basics of Credit~
What is Credit?
Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date.
What are the forms of credit?
- Revolving Credit
This is credit that allows you to borrow a pre-established amount repeatedly as long as your account is in good standing.
- Open Credit
This type of credit requires that all money borrowed must be repaid in full every month.
- Installment Credit