Credit

Credit is one of the oldest systems of financial exchange known to humankind. It is the trust that one party extends to another party that allows the second party not to pay for (or reimburse) the first party immediately. Credit, in short, involves purchasing something with money that one does not have, whereupon the parties in question (buyer and seller) come to an agreement that the purchasing party will reimburse the party distributing the goods over a temporally structured duration, with each installment of payment possibly holding the weight of interest upon each subsequent reimbursement. Credit does not require money; as such, the concept of credit can be applied to barter economics when both parties agree to provide and exchange products, services, or other resources ...