Question

What is credit? What is debt? What does your credit score tell lenders about you? What are four tips for using credit wisely? What are three alternate ways of building up enough credit to get a credit card? What is a loan? What is the principal? What are assets? What is collateral? What is installment credit? What is noninstallment credit? What is revolving credit?

Answer 1

Credit is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately, but promises either to repay or return those resources at a later date.

Step-by-step explanation:

Answer 2

Credit is the amount of money that a company will lend to you, and debt is the amount of credit that you have borrowed and still owe.

Your credit score has many components: payment history, amount of available credit that you are using, length of your credit history, types of accounts (credit mix), and new credit.

A loan is a type of credit, and assets are things of value that you own by yourself without owing money on them.

Collateral is assets that you can use to secure a loan, so that if you don't pay what you owe the lender can take those assets from you to recover the amount you owe them.

Installment credit is a loan that you pay in chunks every month/year. Revolving credit is automatically renewed as you pay off the debt. If the credit amount is $1000, and you borrow $500 you will have $500 left. If you then pay off $200 you will automatically have $800 of credit available to you.