Q. What is credit?
Solution:
Credit is the ability to borrow money or access goods and services with the promise to pay later. It allows people to buy things they may not have enough money for at the moment and pay for them over time.
For example, when you use a credit card, you can buy items and pay the bank back later, usually with interest.
Credit is often provided by banks, lenders, or other financial institutions. When you borrow money, you are expected to pay it back according to an agreed schedule, sometimes with extra fees or interest. The ability to borrow depends on your creditworthiness, which is based on your past borrowing history and your ability to repay.
In simple terms, credit is like a trust that the lender gives you, allowing you to use their money now, with the promise to return it in the future. It plays an important role in personal finance, business, and economic growth.
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