Concept of credit
consumer credit is defined as credit granted to an individual especially to finance the purchase of consumer goods or to defray personal expenses.
The idea behind the use of credit is either to enable a person enjoy consumer goods now and pay later or to use money that he is yet to earn.
The originator of credit is the person or company who originally extended the credit, while the holder is the individual or business who obtained the debt at a discounted price in order to collect payments at a subsequent time. Auto dealers are credit originators at the time a consumer purchases an auto on credit, but many loans are subsequently assigned by them to banks or sales finance companies, which become credit holders.