1. CREDIT By: Shekaib Rashidi

2. WHAT IS CREDIT?  The ability to obtain goods or services before payment, based on the trust that payment will be made in the future.  Commercial credit, investment credit, bank credit, consumer or personal credit, real estate credit, public or government credit, and international credit.

3. WHO USES CREDIT?  Consumers  Businesses  Government  Credit, in commerce and finance, is a term used to denote transactions involving the transfer of money or other property on promise of repayment, usually at a fixed future date.

4. ADVANTAGES OF CREDIT  MONEY  Fixed date of return  Valuable in case of emergencies  Reliable

5. DISADVANTAGES OF CREDIT  Debt  Very high rate of compounding interest

6. QUESTIONS TO ASK BEFORE USING CREDIT  What is the fixed rate of interest?  What kind of interest is applied?  What are the potential penalties regarding the payment return?