Credit is such a common part of our lives, you might not realize how often you use it. Anytime you buy something or receive a service without paying cash for it immediately, you're putting credit to work for you. Credit can make a real difference in your life, helping you to get something when you want it, or more importantly, when you need it. The person who takes out a consumer credit loan promises to pay it in full, usually with interest, at set dates in the future. Interest is a charge added to the original amount of the loan to pay the lender for the use of the money.
Credit is based on trust.
When someone trusts you, they believe you'll keep your promises. When you use credit to buy something, you're promising to make your payments on time.