A credit is a debt for a loan or more generally
a resource for the company. The etymological meaning of
credit is trust in others. This is the
past participle of Latin credere, to believe.
Credit is often represented by the payment card
as a means to claim credit easily, despite
some risk [1]

Summary
     * 1 In finance
           o 1.1 The credit agreement
           o 1.2 Credit Interest
           o 1.3 TEG: the percentage rate
           Ø 1.4 Categories
     * 2 In accounting
           o 2.1 Bank Accounts
     * 3 Cultural aspects
     * 4 See also
     * 5 Notes and references

Finance
The credit includes a variety of lending money, that
whether in the form of contracts or bank loans
payment delays of a supplier to a customer.
To meet the demands of credit, an institution
bank or financial can either use pre-saving
available to it or borrow it in turn in the market
monetary or create the amount borrowed by the mechanism
of money creation.
Credit is usually provided with an interest that must
pay the debtor (the borrower, also called
borrower) to the creditor (the person who grants credit, called as lender).

The credit agreement
The credit agreement is a business based on trust
the lender gives the borrower that he expects the
repayment of the loan. Generally, the higher the lender
have confidence in the borrower, the more it will pay
large amount with low interest rates. Conversely,
unless the borrower has credit in the eyes of the lender,more it will be chilly, require significant guarantees and lend money at high interest rates.
Automated methods of risk assessment, clients
(credit scoring in English), to award a note
amounted to the ability to repay a so-called%)
borrower from various information (income,
debt ...) are used to facilitate analysis for
credit operations from the mundane (credit
Consumer credit card ...)

Credit Interest
Interest is a sum of money that the borrower must
repay more than the sum borrowed. If requesting
Interest has been historically condemned as qu'usure of
Nowadays, it justifies the payment of interest by three

arguments:
     * The lender's risk if some people do
not pay and are not creditworthy, that is to say that
sale of their goods will not recover the sum
lent, interest cover losses.
     * Inflation: Inflation causes a devaluation
constant currency and interest allow, among
others ultimately recover an amount equivalent money.
     * The remuneration of banking: that the
Bankers are paid, there must be a
benefit to the practice of lending money.
In France, the concept of interest rates is accompanied by a
referent, in this instance limit, which is the rate of 'wear.
Under Article L.313-3 of the Consumer Code,
is declared usurious "any conventional loan made to a
percentage rate (APR) that exceeds, when it is
made, over a third, the actual average rate charged to
previous quarter by credit institutions
for transactions of this nature involve risks
similar. The thresholds of wear are published and available
the site of the Banque de France

TEG: the percentage rate
This rate is supposed to represent the real cost to the
Guest user it includes costs associated with mandatory
contractually, ie filing fees, commissions
various costs of specific safeguards. In practice,
many elements are presented on an optional
(eg insurance) and are therefore not included in the
TEG. We must also distinguish even soft costs
related services (eg maintenance credit
automotive) ancillary costs of insurance. Practice
now is to develop products and solutions
akin to financing leases and not covered
the obligation to produce the TEG contract. There is
in this area one way to go for that
professionals produce a sufficient level of information and
clear. In 1998 the European Commission adopted its
Directive No. 7 the following definition of calculating the APR, according to actuarial mathematics: the TEG is such that algebraic sum of flows entering (+) and outgoing (-)
is zero at any time. The APR is the annual rate
based on 365 by convention, the equivalent daily rate i
discount: (1 + TEG) = (1 + i) ** 365. The discounted stream FA a flow is such that F0 FA = F0 * (1 + i) ** N where N is the actual number of days between the date of exchange of the FA date of exchange F0. Usually chosen as the date of
reference the highest flows. The Republic
French adopted this Directive into law 2002-927. It
is quite easy to calculate the APR of a credit with the help
a spreadsheet.

Categories
Article: Types of bank loans.
The banks, which are the main providers of credit
both individuals and companies, distinguished
general appropriations:
     * Short term (1 day to 2 years)
     * Medium term (2 to 7 years)
     * And long term (beyond).
This division is not strict and vary from bank to bank another.
In addition there are usually:
     * The loan, a fixed sum to repay one or
several fixed maturities
     * The revolving credit or overdraft corresponding
the right to borrow unlimited money from the bank
limits the duration and amount. For the recipient,
interest is to use the money according to his need and
therefore borrow more than is strictly necessary. This is the case including the opening of credit, revolving credit or
the overdraft. The authorization that the bank
given name is a letter of credit.

General Accounting
In accounting, the word "credit" is a term
technical means one of two columns of accounting
double entry. By convention, this column is always
the right. This column is used to record:
     * Source of funds (or more generally resources
as capital contributions)
     * Earnings of the company (sales, the
financial products)
     * Debts of the company to suppliers, the State
and loans made to the bank.
The complementary notion of credit flow.

In bank accounting
The account statement provided by the banker works "to
upside down "accounting usual, because it is a
extract of the accounts of the bank, not the
customer accounts. However, the terms of credit and
flow have their etymological meaning. On the one hand, if the customer has
confidence in the bank, he confided that money was
find in the credit column of his paper he gives
the "credit" to the bank. On the other hand, if he borrows
the money he owes a debt to the bank, which amount
find in the debit column of the extract: it is "
debtor to the bank.
But in business accounting, the cash account
works in the opposite direction. What a company
have is in the debit column of his cash account or
its capital account and what it spends in the
credit column of his cash account or the account
provider has not yet paid.
For the bank, the applicant is a provider of money.
Each time the bank receives from the client a
money, he notes both credited to the account that
takes its name (this is in addition to money that
bank must) and debit cash account he holds in his
own accounts (notes that the customer gave
addition to the money the bank has).
The credit column of the extract of the account has two
meanings: first the "credit" granted to the bank
since the client lends money (the etymological meaning of
term "credit"), secondly the "debt" that the bank
Notes to the customer (accounting sense of the "credit" in
account provider).

Cultural Aspects
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Credit with interest is forbidden by Islam [2].