Credit in the Economy Essay

Submitted By scholarly1

Words: 322

Pages: 2

Open Document

Credit plays a vital part in our economy especially in the lives of individuals. But what is credit? And what are the advantages and disadvantages of credit?
Credit is an agreement to get money, goods, or services now in exchange for a promise to pay in the future. The decision to extend credit is usually based on an individual’s credit report. A credit report will contain information on whether or not you have missed, or have been late on your payments in the past and how late you were. It will also provide details such as your current and previous addresses, social security number, any credit card accounts and current balances you may have, as well as past credit card accounts even if those accounts have been closed or canceled.
There are different types of credit and each has different payment options. Installment credit: you sign a contract to repay a fixed amount of credit in equal payments over a period of time. Revolving credit gives you the option of paying in full each month or making a minimum payment. As you pay the money back, it becomes available to borrow again. Open 30-day accounts are required to be repaid in full each month.
Credit has its advantages when used wisely. The main advantage I believe is that credit is convenient. People can use credit if they do not have the cash to pay the total cost of an item or service at one time. Credit can help if money is needed for emergencies, such as unemployment, illness, death, or property loss.
Credit also

Joshua Zeitz's The Roarties

but the entire world. Morale was gone, people were mentally and physically exhausted from the war's destructive nature. The people of Europe had to rebuild their nations and start a new. With the help of America, Europe began to rebuild, America’s economy boosted from the selling of goods to the European nations affected by the war. This boost in sales allowed for a time of prosperity, where people had jobs and earned wages that could support their families. Along with jobs, more leisure time increased…

Words 1185 - Pages 5

Money: Debt and Credit Essay

fractionally reserved credit system which characterizes modern global finance. Much like the universe, which began with a big bang nearly 14 billion years ago, but is expanding so rapidly that scientists predict it will all end in a “big freeze” trillions of years from now, our current monetary system seems to require perpetual expansion to maintain its existence. And too, the advancing entropy in the physical universe may in fact portend a similar decline of “energy” and “heat” within the credit markets. If…

Words 2519 - Pages 11

The Current Financial Crisis

consequence, the global economic recession.” The current financial crisis has negatively impacted households and businesses, specifically the “cost and availability of credit.” Bernanke emphasizes credit as the foundation of our modern market economy; the restrictions on credit have therefore resulted in damage to the US economy. He lists several aspects of the community that are suffering: “college graduates are facing the toughest labor market in 25 years”, “families are trying to cope with lost…

Words 1091 - Pages 5

Review Of Dropping Shopping

valuable information about the economy. Consumer spending is the biggest component of our gross domestic product, making it a key metric to follow. “Dropping shopping” it is the article which presents Britain’s consumer slump and the signs of its recover. The article analysing typical household’s accounts, provides information about a number of factors which, are likely to have restrained household spending growth. The factors include weak income growth, tight credit conditions, concerns about debt…

Words 916 - Pages 4

The Big Bill Essay

Nicole Havens Mrs. Scherer English 9R/10R 14 Nov. 2012 The Big Bill Filing for bankruptcy is a way for people who are in over their heads with debt can have a fresh start with their credit history. Bankruptcy is the only way for many insolvent debtors to get a clean slate. The definition of bankruptcy is any insolvent debtor; a person unable to satisfy any just claims made upon him or her (dictionary.com). In 2009 a record 3000,000,000 people had filed for bankruptcy that year, which…

Words 1133 - Pages 5

Federal Reserve Essay

Reserve System was established in 1913 by the U.S Government to regulate the economy. 1913 is also when the United States implemented the monetary policy, which is a major part of the Federal Reserve. It is central bank for all the United States banks so basically the center of all banking, kind of like where the banks do their banking. Its reason is to control the supply of money and the cost and availability of credit. It also controls the daily supply and prices of money throughout the United…

Words 1735 - Pages 7

Examine The Ways In Which Credit Crunch Has Impacted Its Operations

one specific multinational enterprise with which you are familiar, examine the ways in which ‘credit crunch’ has impacted its operations. Evaluate the strategic responses it has made, and might make going forward, to respond to the impacts of the credit crunch on its operations. Introduction; This work will focus on the broader economic impact of the crisis in credit markets, which began over three years ago with the downturn in United States (US) sub-prime…

Words 3801 - Pages 16

Essay about 1399578021 EcomomicsHonorsFinalExamRevi Hellip

take the higher standard deduction) Credit: For those who do not have credit, there are three basic ways to build it: - Try to get a store or gas credit card (these are usually easier to get than a major credit card such as Visa, MasterCard, or American Express) - Find someone with established credit to co-sign for you on a loan - Get a “secured credit card” from your bank The latest major credit card legislation (passed in 2010) made it illegal for credit card companies to issue cards to anyone…

Words 1586 - Pages 7

Essay on What Is Sovereign Debt?

International financial markets have been beset by the European sovereign debt crisis during 2010-2012, leading to high volatility of financial market and recession of the economies as well. The reason why the extensive impacts on financial markets could be triggered by the government debt problems from a few relatively small economies causes a heated discuss. In this essay, we intend to discuss the contagion effect of sovereign debt crisis among financial markets by analyzing the prior studies on this…

Words 1864 - Pages 8

Coca-cola and Stable Economy Essay

marketing programs worldwide • Global availability - Coca-Cola products are bottled and distributed worldwide • Ongoing innovation - continually providing consumers with new product offerings e.g. Diet Coke (1982), Coca-Cola Vanilla (2002). The Economy: The economy is the production and consumption of goods and services of a country as a whole. The economic environment is made up of millions of decision makers. For a business these are the most important: • Consumer- if they are afraid to spend their…

Words 514 - Pages 3