Published:June 2, 2022 Modified:November 3, 2022
Credit

What is the meaning of Credit?

This term has many meanings in the financial world, but credit is generally defined as a contract agreement in which a borrower receives a sum of money or something of value and repays the lender at a later date, generally with interest.

Credit also may refer to the creditworthiness or credit history of an individual or a company. To an accountant, it often refers to a bookkeeping entry that either decreases assets or increases liabilities and equity on a company’s balance sheet.

Credit Definition

Credit refers to your ability to borrow money to make purchases. The agreement you sign will require you to repay the entire amount within a certain time. A loan will usually have an interest charge, which means you must repay more than the amount borrowed.

Types of Credit

Revolving Credit

A line of credit can be one type of credit. It has a limit and can only be used until the threshold is reached. Although it may have minimum monthly payments, there are usually no fixed repayment terms. 

Installment Credit

Another type of credit is the installment loan. This type of credit has a fixed repayment schedule and a specific term. A car loan is an example of an installment loan. You are required to make a fixed payment schedule until the loan is fully paid.

Open Credit

Open credit is a form of credit that requires full payments for each period. Open credit allows you to borrow up to a certain amount. However, at the end each month, you must repay the entire amount borrowed. A cell phone bill is an example. You can use your phone, send texts, and make calls each month. At the end of the month you will have to pay the charges for the services used, including any usage fees. A utility bill, such as your electricity usage, is another
example.

Credit for Church Financing

Credit is a loan based on a promise to pay back the debt, with interest or without. It’s a way of borrowing money that involves a contract between two parties: the borrower and the lender. Credit can be used for almost anything: education, buying a house or car, starting a business and even paying for church financing renovations. Hub City Lending offers a wide variety of Lending options for clients regardless of their credit history. 

For more information on our financing services please contact Hub City Lending and we will get you on the path to financial success.

Apply for a Mortgage

Using Our Secure Application

Hub City Lending NMLS #1744962 | Donald Spoon NMLS #1743440

Apply for Business Financing

Using Our Secure Application

Apply for Equipment Financing

Using Our Secure Application
Nonprofit
Definition

Nonprofit

Published:May 19, 2022 Modified:November 3, 2022 What a Nonprofit? A nonprofit organization (NPO), also known as a non-business entity,not-for-profit organization, or nonprofit institution,is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that operates as a business aiming to generate a profit for its owners. Nonprofits are restricted by the principle

Capital
Definition

Capital

Published:May 20, 2022 Modified:November 3, 2022 What is Capital? Capital in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing. Capital can refer to anything that provides value or advantage to its owner, such as a factory and its machinery, intellectual

Apply for a Mortgage

Using Our Secure Application

Hub City Lending NMLS #1744962 | Donald Spoon NMLS #1743440

Apply for Business Financing

Using Our Secure Application

Apply for Equipment Financing

Using Our Secure Application