CreditSystem
CreditSystem refers to a method or framework used to track and manage financial obligations and their repayment. It is a fundamental component of modern economies, enabling individuals and businesses to access funds for purchases, investments, and operational needs. At its core, a credit system involves lenders extending credit, which is a promise to repay borrowed money, usually with interest, over a specified period.
The functioning of a credit system relies on trust and risk assessment. Lenders evaluate a borrower's creditworthiness,
Credit systems facilitate economic growth by allowing for consumption smoothing, investment in long-term assets like housing