What is Consumer Credit?

Credit is the act of granting a loan by one party to another party. The first party is called the creditor (the party loaning the funds) also known as the lender and the second party is called the debtor or also known as the borrower. The debtor agrees to repay or return the funds to the creditor at a later date with agreed upon terms. The creditor and debtor agree to the terms of repayment and the amount of repayment which will usually include the full amount of the loan and a predetermined amount of interest. The debtor usually does not repay the creditor immediately, but repays the creditor in agreed upon installments that usually include principal and interest until the loan is paid in full.

When credit is issued it usually has terms of repayment that are based upon the debtors credit history and on the creditworthiness (past payment history) of the debtor responsible for the repaying the funds. The better the debtors credit payment history the better the terms of loan will be like having a lower interest rate. Many creditors will offer better terms and lower interest rates to consumers with better credit ratings.

Your credit record (credit history) is one of the most important factors creditors consider when you apply for credit to borrow money. Building a good credit history (credit report) is an important factor in achieving financial freedom.

This web site contains lots of invaluable information, helpful tools and many other resources designed to help you create and maintain a good credit history. So take advantage of the information, tools and resources we provide to help you keep your good credit history. Or if you need help getting credit or help to get your credit in order, It's time to take charge of your credit now and get on track to becoming a credit worthy person.

It's important to remember to use Credit Wisely!

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