Credit

Credit is borrowing money, usually to buy goods.

Interest usually has to be paid on a loan. There may also be administration costs to pay, and interest may be charged on these too. A creditor is an individual or a company making a loan and may also be known as the lender.

There are various types of credit, from credit cards to hire purchase.

Find out more about the different credit options at: www.adviceguide.org.uk/scotland/life/debt_scotland/credit.htm#Whatiscredit