Revolving credit, installment credit, and open credit are the three main categories of credit.
People can use credit to borrow money to pay for products or services. After a predetermined period of time, the lender anticipates receiving the payment plus extra funds (referred to as interest). Credit is indeed the trust that permits one party to lend financial means to that other party, with the understanding that the second party will either repay or restore the resources (or other products of comparable value) at a later time, avoiding the creation of a debt in the process.
Credit is a strategy for formalizing reciprocity, making it enforceable by law, and extending it to a sizable number of distinct individuals.
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