which are examples of credit select all that apply
1) Credit cards: These allow users to borrow money up to a certain credit limit and pay it back over time, often with interest.
2) Personal loans: These are loans provided by financial institutions that can be used for various purposes such as debt consolidation, home improvements, or medical expenses.
3) Mortgages: These are loans specifically used to finance the purchase of a home or property.
4) Auto loans: These are loans specifically used to finance the purchase of a car or vehicle.
5) Student loans: These are loans specifically designed for students to finance their education and are often repaid after completing their studies.
6) Store credit cards: These are credit cards issued by specific retailers that can be used only at their stores and often offer special discounts or rewards.
7) Lines of credit: These are flexible borrowing arrangements where the borrower is given a maximum credit limit and can borrow and repay money as needed.
8) Payday loans: These are short-term, high-interest loans typically due on the borrower's next payday.
9) Home equity loans: These are loans that use the equity in the borrower's home as collateral and can be used for various purposes such as home renovations or debt consolidation.
Examples of credit can include:
1. Credit cards: These are a type of revolving credit that allows you to borrow money and make purchases up to a certain credit limit. You have to repay the borrowed amount within a specified time period.
2. Personal loans: These are fixed-amount loans that you borrow from a lender. You receive the entire loan upfront and then repay it in installments over a specified period, typically with interest.
3. Mortgages: These are loans used to finance the purchase of real estate, such as a home. The loan is repaid over a long period, usually with fixed monthly payments and interest.
4. Auto loans: These are loans used to purchase a vehicle. As with personal loans, you receive a lump sum upfront and then repay it over a specified period with interest.
5. Student loans: These are loans used to fund education expenses. They typically offer low interest rates and have various repayment options after graduation.
6. Home equity lines of credit (HELOC): These are credit lines that use the equity in your home as collateral. You can borrow funds, as needed, up to a predetermined limit and repay it over time.
7. Retail store credit: Some stores offer credit accounts to their customers, allowing them to make purchases on credit and pay off the balance over time.
It's important to note that while credit can be useful in many situations, it's crucial to manage it responsibly and avoid accumulating excessive debt.