What is credit?


One form of credit is where the borrower receives something of value for a promise to repay the debt at a future date, usally with interest. There are many examples of credit:

Consumer Credit

  • Revolving
    • credit cards
    • other
  • Non-Revolving
    • auto loans
    • student
  • mortgages

Corporate Credit

  • loans
  • commercial paper
  • bonds

Government Credit

  • US treasury bills, notes and bonds
  • State municipal bonds
Written on August 23, 2016