10 Facts about Credit
Facts about Credit talk about trust where the first party loans the money to the second party. Since the second party does not repay the money as soon as possible, he or she generates debt. The second party should reimburse it later. The resources that the first party lends to the second party are not always money. It can be in the form of service or even goods. Check other interesting facts about credit below:
Facts about Credit 1: the borrower and lender
The borrower is called as the debtor, while the lender is the creditor.
Facts about Credit 2: the money in the credit
If you think that money is always needed in the credit, you are wrong. The services and goods in the barter economies can be applied with a credit concept too.
Facts about Credit 3: the importance of credit
Credit is very important in the economy. The equity transfer as well as the credit transfer plays an important role in the movement of financial capital.
Facts about Credit 4: the reputation
The reputation of the entity is very important to decide because credit is dependent on it. The creditworthiness should be high because the entity has to be responsible with the money or resources.
Facts about Credit 5: the credit default swap market
Have you ever heard about the credit default swap market? It is considered as the purest type of credit. Actually the people can trade credit in the market of finance. This purest form of credit can be found in credit insurance. Get facts about credit union here.
Facts about Credit 6: the types of credit
Can you mention the types of credit? Those include the real estate credit, public credit, commerce credit, bank credit, investment credit, consumer credit and international credit.
Facts about Credit 7: the commercial trade
When you involve in the commercial trade world, the people use the term credit to call trade credit.
Facts about Credit 8: how to get a credit
If you want to get a credit, you need to have great credit score. The person who has financial difficulty or stability is not granted by the creditor.
Facts about Credit 9: offering credit
The credit manager has to handle the customers who want to get credit in a certain organization.
Facts about Credit 10: the consumer debt
The personal loans, retain loan, consumer lines of credit, credit card, mortgages, store cards and auto finance are included in consumer debt. Find facts about credit card debt here.
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