Credit is the ability of a customer to obtain goods or services before payment, payment is made in the future plus applicable finance charges, at an agreed-upon time. Some people have more credit than others - therefore can spend more.
The american credit bureau Equifax is the largest credit agency in the world and operates in 15 countries spread across Europe and Latin America.
These are the types of credit:
Revolving credit
You are given a maximum credit limit, and you can use that credit to make payments up to that limit. Each month, you carry a balance and make a payment. Most credit cards are a form of revolving credit.
Charge cards
While they often look like revolving credit cards and are used in the same way, charge accounts differ in that you must pay the total balance every month when a statement is issued.
Installment credit
With installment credit, a creditor loans you a specific amount of money, and you agree to repay the money and interest in regular installments of a fixed amount. It is generally repaid in equal monthly payments. Car loans and mortgages are two examples of installment credit.
Service credit
Agreements with service providers are all credit arrangements. Some examples of service credit are when you receive electricity, cellular phone service, and cable television with the agreement that you will pay for them each month. Not all service accounts are reported in your credit history.
