Credits are the important purpose of business. We follow credit policy and rules in business. Now, what is credit? How it is different from other forms of business purposes. Credit is a deal that one party does to another party. Like if we go to a bank and want some loan for business purposes. The manager will approve your loan and will take some interest from it. It might vary from bank to bank. The time limit for this will be mentioned. At that time we have to pay the interest amount. This is called a credit policy. Here we will be discussing credit policy.
Various example of credit
There are various ways to repair your credit. Like we can term credit as the line of credit, the trust which one does to the opponent in case of money. The main thing is credit is the payable interest which is to be paid timely. We know that banks are much involved in business and they offer a credit card to their customers. Even private, as well as a business firm except for the bank, do so. Further clarification of goods and services requires a credit facility. Credit facilities are common in India. To deprive this more we need more business to come across.
Various types of credit
As we came across, how to repair your credit. So now we will know about various types of credit. Some are mentioned below.
- Revolving credit is one of the types of credit. In this, you have to maintain the capped limit. The limit is derived from the earning and then that limit is set every month.
- Installment is another credit facility. In this process, you have to pay the money in installments. Like you purchase a car, you took a loan and rest money you pay in installments timely manner.
- Open credit is very common. Here we pay an electricity bill, phone bill using credit cards. Just we need a credit card to be borrowed.
Lastly, we can say that credit is the basic use of life. The use of credit cards is common no we r days. The best part is you don’t have an overdraft facility here. The loan you purchase the interest you have to pay for it. The ways to repair your credit is simple and easy. You can rely on it and can make your business easy. Be happy and make this a part of your life.