Consumer Credit

Consumer credit is also termed as consumer debt. Basically, a consumer credit is a form of credit offered to a customer allowing the possession or usage of services and goods in the duration of the payment term. There are different forms and functions of consumer credit. Concept of Consumer CreditConsumer credit is a type of debt, which is obtained by an individual for the intention of buying a service or commodity. Consumer credit can be received in the form of lines of credit, credit card debts (buying commodities with the help of credit cards) and many other forms of loans. Consumer credit is also known as consumer loan. Consumer credit is applied to finance consumption instead of investment.

Consumer credit also includes offering loans to people with poor credit scores. In the United States, this is termed as subprime lending. Usage of Consumer Credit Consumer credit is utilized by families and individuals for family, personal or household aims or uses. With the help of consumer credit, families and individuals are able to purchase the necessary or coveted commodities and services implementing their earnings in the future.
Forms of Consumer Credit Consumer credit is available in different forms and they include the following:
Automobile loans
Education loans
Recreational vehicle (RV) loans
Trailer and boat loans
Payday loans
Credit card debt (Forms of open-end credit)
Lines of credit
Availability of Consumer Credit Consumer credit is available in the form of bank loans, as well as indirect finance, for example, hire-purchase agreements and retail finance loans. Consumer credit comes under the purview of retail banking.

Consumer credits are considered as a form of unsecured loan so a higher rate of interest is charged on this type of loans.

The leading financial service providers that offer consumer credit include the following:
HSBC (Hong Kong and Shanghai Banking Corporation Ltd.) Finance
Wells Fargo
CIT Group Incorporated
ICICI Bank Limited

More Information Related to Credit
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Credit & Debit Credit vs Debt Credit Fraud
Line of Credit Letter of Credit Credit Loan
Credit Consumer Act Micro finance Consumer Lending
Credit and Business Cycle Credit Control Credit License
Consumer Credit Counselor Credit Repair Credit Relief
Free Credit Report Credit Score Credit Secrets

Last Updated on : 9th July 2013

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