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:
Recreational vehicle (RV) loans
Trailer and boat 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
CIT Group Incorporated
ICICI Bank Limited
Last Updated on : 9th July 2013