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Are "auto finance" and "auto finance plans" worth a paragraph?
This article bespeaks none of the horrifying problems with credit markets that have dominated the 3rd quarter of 2008. —Preceding unsigned comment added by 18.104.22.168 (talk) 16:44, 25 November 2008 (UTC)
Credit vs. debt
From the lead:
- ... the provision of resources (such as granting a loan) by one party to another party where that second party does not reimburse the first party immediately, thereby generating a debt, and instead arranges either to repay or return those resources (or material(s) of equal value) at a later date
That's not credit. That's lending. To lend is "to let out (money) for temporary use on condition of repayment with interest," says my paper dictionary.
The same dictionary defines credit as "financial or commercial trustworthiness" or "time given for payment for goods or services sold on trust." Other definitions involve some form of trust, reliance, or reputation (or refer to the bookkeeping sense of the word: debits and credits or refunds owed a person). A credit card is "a card authorizing purchases on credit." A line of credit is "the maximum credit allowed a buyer or borrower."
While people often say credit when they mean borrowing or debt, we should avoid using it that way, defining it that way, or muddying the water further.
- Lending redirects here. It might be nice to make this more clear, but I'm not sure that in general the finance field matches up with what that livestrong link says, and I'm not sure a dictionary source is best for finance. A legal discussion and financial discussion seems to equate credit with short-term loans, which I don't think it really helpful. Lenders are often called creditors, and lent funds are often called credit in the field itself. Lending can be called lending, but it can also be called extending credit. Perhaps it would be better to say that creditors extend resources based on credit? II | (t - c) 01:06, 13 June 2010 (UTC)
- I don't object to "Creditors provide resources based on credit" on the basis of correctness, though "Lenders provide resources based on credit" sounds less circular.credit is a voucher
- It makes sense that the word credit is often used to refer to lending. Buying something "on credit" means financing it – it means taking out a loan. It's similar to to "mortgage loan" and "mortgage," which are used interchangeably in the finance sector even though they don't have precisely the same meaning.
- It's fine for the lead to say, "Loans and lending are often called credit" or, even better, "Since credit is the basis for lending, credit often refers to loans and lending in general.'"
Generic Terms: Consumer Credit vs Credit Cards
The terms Consumer Credit and Credit Cards get thrown around to a great degree and it should be noted that there is a difference between Consumer Credit Cards and Major Credit Cards. Consumer Credit Cards are typically “store cards”; Major Credit Cards would be VISA, MasterCard, Discover, American Express, etc. According to the major credit bureaus, Consumer Credit Cards will actually drive down your credit score. —Preceding unsigned comment added by STMahlberg (talk • contribs) 15:09, 5 August 2010 (UTC)
Even though, by transition, "credit" may descend from "credo", I believe it would be more accurate to provide the latin equivalent "creditum" (https://en.wiktionary.org/wiki/creditum) as the origin of the english word. Elferdo (talk) 08:16, 12 February 2014 (UTC)
Dr. Rios-Rull's comment on this article
Dr. Rios-Rull has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:
Mechanical definition. Not simple. Credit is a delayed payment. The credit default swap is not the purest form. A loan is. It should also provide some description of what happens if the contract is not honored.
We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.
Dr. Rios-Rull has published scholarly research which seems to be relevant to this Wikipedia article:
- Reference : Nakajima, Makoto & Rios-Rull, Jose-Victor, 2014. "Credit, bankruptcy, and aggregate fluctuations," Working Papers 14-31, Federal Reserve Bank of Philadelphia.