When talking about lending or loans, what we are really talking about is credit. Credit is money you ask for to pay for something. You promise to repay this money, plus an additional amount, usually called interest.
Used carefully, credit can be extremely useful. On the other hand, if not used responsibly it can cause major problems. “Good credit” typically means that you repay your loans on time, and don’t abuse the credit limits given to you. The better you maintain your credit today, the easier it is to obtain credit in the future. Continue reading ‘Basics of Lending’ »