Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. |
CreditworthinessCreditworthiness is the extent to which a person is deemed suitable to receive credit. Most banks only lend money when they are sure they will be repaid.
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Interest RatesAn interest rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding. It can be lowered or raised dependent upon the borrower.
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Simple and Compound
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