Credit. It is something that we are all familar with but what exactly is credit?

Well, credit simply means something that is used in exchange for a promise that the payment will be made later.

For instance with a credit card the cash does not change hands there and then, but you use the credit card to say that you will pay at a later date when your bill comes.

Usually therefore credit is when someone advances you money (a bank, someone you buy a product off) on the basis that you will pay the debt off at a future stage.

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