A credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some later date. When a consumer purchases something using a credit card, they are buying on credit. Any time when an individual finances something with a loan (such as an automobile or a house), they are using credit in that situation as well.
There are four basic types of credit. A person will be able to get the most for his/her money and can avoid paying unnecessary charges by understanding how each works. Credit is a powerful tool that comes in several forms. It allows a person to buy now with the promise of paying later.
Some of the different types of credit can be found at the following links.