Every person has a dream purchase, they’ve either been saving up for or have waited for long for. For a majority, these investments take the guise of a home, car, studying a course at an esteemed institution, starting your own business, taking a world tour. However different these may be what binds them all together is the fact that they each require shelling out a lump sum of money.
Credit (from Latin credere translation. "to believe") is the trust which allows one party to provide money or resources to another party where that second party does not reimburse the first party immediately (thereby generating a debt), but instead arranges either to repay or return those resources (or other materials of equal value) at a later date. The resources provided may be financial (e.g. granting a loan), or they may consist of goods or services (e.g. consumer credit). Credit encompasses any form of deferred payment. Credit is extended by a creditor, also known as a lender, to a debtor, also known as a borrower.