ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Credit, as you already know, is an arrangement to receive cash, goods or services now and pay for them in the future. Consumer credit refers to the use of credit for personal needs by individuals and families as contrasted to credit used for business or agricultural purposes.

Detailed explanation-2: -What are the Types of Credit? The three main types of credit are revolving credit, installment, and open credit. Credit enables people to purchase goods or services using borrowed money. The lender expects to receive the payment back with extra money (called interest) after a certain amount of time.

Detailed explanation-3: -Interest. A fee charged by a lender, and paid by a borrower, for the use of money. A bank or credit union may also pay you interest if you deposit money in certain types of accounts.

Detailed explanation-4: -Credit is when goods, services, or money is received in exchange for a promise to pay a definite sum of money at a future date. Debt Management is simply creating a plan to repay debt in a productive way. A credit score is a prediction of how likely you are to pay your bills.