Credit is the term used to describe a transaction in which a person receives merchandise, money or services for little or no money upfront, and promises to pay an agreed amount of money, in an agreed period of time in the future. Usually, the person or company that gives credit to a person charges a fee for providing the service.
Without credit, a consumer would have to save the full cash amount to make major purchases such as household appliances, a car or a house. Credit helps consumers improve their lives and empowers them to strive for greater financial well-being.
Credit also creates benefits that help society at large. By providing credit to consumers, businesses are able to sell more goods and services. This creates more jobs and helps the economy grow.