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HAT IS CREDIT? The average American has a better understanding of General Motors than he or she does about their credit rating. Credit is used every day by millions of Americans, yet most do not have the faintest idea how our credit system really works. Most people only know that they can pull out a plastic credit card and buy something that they don't have the cash to pay for.
The dictionary defines credit as financial trustworthiness. Time given for payment for goods SOLD ON TRUST!
Actually, the credit system we now use is as old as the business world itself. The trend of today that we see advertised everywhere is: "BUY NOW AND PAY LATER." It is this philosophy that has caused millions of Americans to live from payday to payday, or from payment to payment!
Credit has been extended whenever goods are sold, or where services have been rendered and immediate payment of cash has NOT been made. The principle of credit is the same, whether the corner grocery store owner lets a patron "put it on the tab" until payday, or an executive takes a $5,000 cash advance from his American Express(TM) GOLD CARD!
HAT IS CREDIT? The average American has a better understanding of General Motors than he or she does about their credit rating. Credit is used every day by millions of Americans, yet most do not have the faintest idea how our credit system really works. Most people only know that they can pull out a plastic credit card and buy something that they don't have the cash to pay for.The dictionary defines credit as financial trustworthiness. Time given for payment for goods SOLD ON TRUST!
Actually, the credit system we now use is as old as the business world itself. The trend of today that we see advertised everywhere is: "BUY NOW AND PAY LATER." It is this philosophy that has caused millions of Americans to live from payday to payday, or from payment to payment!
Credit has been extended whenever goods are sold, or where services have been rendered and immediate payment of cash has NOT been made. The principle of credit is the same, whether the corner grocery store owner lets a patron "put it on the tab" until payday, or an executive takes a $5,000 cash advance from his American Express(TM) GOLD CARD!
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