credit
Sign in to savethumb|right|200px|A credit card is a common form of credit. With a credit card, the credit card company, often a [[bank, grants a line of credit to the card holder. The card holder can make purchases from merchants, and borrow the money for these purchases from the credit card company.]] thumb|right|px|Domestic credit to private sector in 2005
AI overview
Credit is an arrangement where a lender (such as a bank or credit card company) allows you to borrow money to make purchases, which you then pay back later. It matters because it enables people to buy things immediately without having the full amount of cash on hand, as long as they can repay the borrowed amount.
AI-generated from the Wikipedia summary — may contain errors.
Article
12 sectionsContents
- Etymology
- History
- Discrimination
- Bank-issued credit
- Types
- Trade credit
- Consumer credit
- Statistics
- See also
- Notes
- References
- External links
thumb|right|200px|A credit card is a common form of credit. With a credit card, the credit card company, often a [[bank, grants a line of credit to the card holder. The card holder can make purchases from merchants, and borrow the money for these purchases from the credit card company.]] thumb|right|px|Domestic credit to private sector in 2005
Credit (from Latin , "loan") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt), but promises either to repay or return those resources (or other materials of equal value) at a later date. The resources provided by the first party can be either property, fulfillment of promises, or performances. In other words, credit is a method of making reciprocity formal, legally enforceable, and extensible to a large group of unrelated people.