What is Consumer Credit and does it matter to me?

  • Posted on: 21 Dec 2022

  • Consumer credit is what consumers use to purchase goods and services. It is a loan that the consumer will pay back with interest.

    What is Consumer Credit & How does work?

    Consumer Credit is a loan that is used by consumers to buy goods and services. There are two different types of consumers. These are Credit Card and Personal Loan

    A credit card is a form of credit that allows the cardholder to borrow money against their outstanding balance on the card. The credit card issuer or lender will charge interest on the outstanding balance.

    A personal loan is a loan that an individual takes out from a bank, building society, or other financial institution to purchase goods or services.

    The Consumer Credit Act 2004 sets out the rights and responsibilities of consumers who use consumer credit. This act covers what the lender must do when a consumer applies for a loan or line of credit, how much they can borrow, how often they repay it back, and what happens if they cannot repay it back.

    There are two types of credit: revolving and installment. Revolving credit is the most popular type of consumer credit. It allows borrowers to borrow money as needed, up to a predetermined limit, and repay the debt in regular installments. Installment loans require borrowers to pay off the loan in fixed monthly payments over a set period of time.

    How does credit repair help you?

    Credit repair is a type of service that helps people who have bad credit improve their credit scores. It is an option for those who are unable to pay off the debt they owe.

    Credit repair companies provide a range of services from investigating your credit history, negotiating with creditors, and providing advice on how to improve your credit score. They also help you in finding the best loan for your needs and build a repayment plan for your debt.

    Credit repair companies are not regulated by any government agency or body and therefore it is important that consumers understand how these organizations work before signing up with them.

    Call on (888) 803-7889 &  Credit counseling now!