~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
This is credit that you use to borrow money and promise to repay in equal amounts over a specific period of time.