What is Credit?
A selected, short excerpt from Chapter 1 of The Secrets About Good Credit and Debt Reduction
Credit is based on the Latin word creditum, meaning trust or
faith -- an expression of trust in you and your promise to pay in
the future for merchandise purchased or money borrowed. This
expression of trust is not money and it is not free. You pay interest or finance charges for the privilege of using credit.
Credit is critical to the national economy as well as your
household economy. Credit has become an important part of all
phases of today's life and its importance continues to grow.
Working capital for businesses, automobiles, and home purchases
would not be possible without credit. Credit has made outstanding contributions to the development of the U.S. economy and
to the high standard of living enjoyed by many Americans.
Credit and credit needs are growing. Approximately half of
what we purchase as consumers and 90 percent of all business
expenses involve credit. We have many uses for credit: home
and car purchases, repairing and improving our homes, starting
businesses, and making investments. Its importance cannot be
overemphasized. If used wisely, it can help make dreams come
true. Traditionally, business and industry have emphasized that
personal credit is a privilege, not a right. For instance, you may
have the right to buy a house, but if you need to borrow the
money to do so, the lender has the right to set the rules for
borrowing the money.
Businesses have become increasingly favorable toward the use of consumer credit. Businesses know that
the acceptance of credit from consumers gives them a competitive edge by which to expand sales, profits, and market share.
Most consumers use credit for one or all of the following reasons: to raise their standard of living, to increase their enjoyment of life, and for necessity and convenience.
Thus the challenge to us is to have a complete and clear understanding of the rules of credit and what it can and cannot do for us. Remember, fortunes have been made with the wise use of credit. The wise use of credit -- not debt -- is what this book advocates. Everyone should be able to use credit when he or she needs it. Believe me, sooner or later 99 percent of us will have a need to use credit for one reason or another.
The Secrets to Good Credit and Debt Reduction: A Consumer Self Help Guide is a must for anyone who spends money, especially those who are just starting out, considering bankruptcy, or are in bondage with too much debt. Order your copy today!
The author, D.J. Williams, also writes and publishes a free, bimonthly newsletter full of tips, news and other information about consumer credit and money management.
Subscribe to Credit Tips & Trends now!
[Table of Contents | Excerpts | Reviews]
Back to Top
Recommend This Site to A Friend!
| 
