Introduction to Business The Fundamentals of Credit

What is Credit Credit – Privilege of using someone else’s money for a period of time. Promise to repay the amount owed at a future date. Pay back amount borrowed and maybe interest

What is Credit Two parties Creditor – One who sells on credit or makes a loan Debtors– One who buys on credit or receives a loan

Types of Credit Loan Credit – Borrow money to be used for some special purpose Available through: Financial Institutions, Banks, Credit Unions, Savings and Loans Associations, and Finance Companies Sales Credit – Charge a purchase at the time you buy Charge Accounts or Credit Cards