consumer credit

Consumer credit refers to the borrowing of funds by individuals to purchase goods and services, typically through loans or credit cards. It allows consumers to buy items now and pay for them over time, often with interest. Common types of consumer credit include personal loans, automotive loans, and credit lines. Responsible use of consumer credit can help build a positive credit history, which is important for obtaining larger loans, such as mortgages. However, excessive borrowing can lead to financial difficulties, so it's essential for consumers to manage their credit wisely.