Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
There are many ways to define a creditor, but the most common one is:
A creditor is any institution, company or individual that agrees to pay the loaner the said money in agreement that they will pay it back in the future.
There are a number of reasons why you might go to a creditor. Some of the more popular uses of a creditor include:
1. The ability to purchase:
Many times you might miss out on a great deal or property just because you do not have the said sum of money. In such situations, you can loan the money from a creditor, purchase the property and then pay them back in instalments. This way you do not have to miss out on a great opportunity.
2. Less stress:
For many people spending a lump sum amount of money in a jiffy is not feasible. They have to consider their daily expenses and also save money for any emergency situations that might arise. This is when going to a creditor can help. With a loan from a creditor, you will not have to touch your personal finances and also can lower the amount to be repaid in time.
