We hear about the word credit everywhere. There are those who request credits to buy the house of their dreams or the 0km car that they have been looking forward to for many years, there are others who need to request a loan in order to settle past accounts that they have not yet been able to cover. There are many reasons why Argentines resort to requesting a loan. But do you really know what a credit means? What is the definition of credit?
In Rupert Birkin we bring you this note in which we tell you what the definition of credit is so that you are well informed in case you want to request one.
The etymological origin of the word credit and its different uses
The word credit refers to the Latin creditum, this means a “trusted thing.” This means that the concept of credit is related to the notion of being confident.
In education, for example, the word credit is used to define a unit of assessment to qualify a signature. A student can say that he has 20 credits left to complete to finish his studies.
Another use of the word credit takes us to the world of audiovisuals. For example, in movies or on television shows, the title credits is used to display the entire list of people who worked on that movie or program.
We commonly call credit to that amount of money owed to an entity that will usually be a bank, but it can also be a person. This is a loan of money that one party, whether a bank or person, gives to another. With the delivery of this money, a future commitment is established. This commitment means that the person who receives the money will return it gradually by making the payment of fees or in a single payment. And with these fees will also come an additional interest that compensates the person who lends the money, for all the time he did not have that money.
A credit or a loan?
Many people wonder what the differences between a credit and a loan are. When it comes to credit, it is the bank that offers the customer a credit account. The client can access the amount of money he needs, as long as he does not reach the maximum. There are several ways to get credits quickly.
It is very common that the concept of loan is confused with that of credit. When we talk about a loan, we mean that the bank makes a certain amount of money available to a client. This amount will be fixed and must be returned within a certain period of time along with some interest.
In case you are interested in taking out a loan, remember that in Rupert Birkin we offer you the possibility of taking out loans online.