Domestic credit to private sector in 2005

Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately (thereby generating a debt), but instead arranges either to repay or return those resources (or other materials of equal value) at a later date. The resources provided may be financial (e.g. granting a loan), or they may consist of goods or services (e.g. consumer credit). Credit encompasses any form of deferred payment.^[1] Credit is extended by a creditor, also known as a lender, to a debtor, also known as a borrower.

Credit does not necessarily require money. The credit concept can be applied in barter economies as well, based on the direct exchange of goods and services (Ingham 2004 p. 12-19). However, in modern societies credit is usually denominated by a unit of account. Unlike money, credit itself cannot act as a unit of account.

Movements of financial capital are normally dependent on either credit or equity transfers. Credit is in turn dependent on the reputation or creditworthiness of the entity which takes responsibility for the funds. Credit is also traded in financial markets. The purest form is the credit default swap market, which is essentially a traded market in credit insurance. A credit default swap represents the price at which two parties exchange this risk – the protection "seller" takes the risk of default of the credit in return for a payment, commonly denoted in basis points (one basis point is 1/100 of a percent) of the notional amount to be referenced, while the protection "buyer" pays this premium and in the case of default of the underlying (a loan, bond or other receivable), delivers this receivable to the protection seller and receives from the seller the par amount (that is, is made whole).

Credit, in commerce and finance, is a term used to denote transactions involving the transfer of money or other property on promise of repayment, usually at a fixed future date. The transferor thereby becomes a creditor, and the transfer, a debtor; hence credit and debt are simply terms describing the same operation viewed from opposite standpoints.

Types of credit[link]

• Bank credit
• Commerce
• Consumer credit
• Investment credit
• International
• Public credit
• Real estate

Trade credit[link]

The word credit is used in commercial trade in the term "trade credit" to refer to the approval for delayed payments for purchased goods. Credit is sometimes not granted to a person who has financial instability or difficulty. Companies frequently offer credit to their customers as part of the terms of a purchase agreement. Organizations that offer credit to their customers frequently employ a credit manager.

Consumer credit[link]

Consumer debt can be defined as ‘money, goods or services provided to an individual in lieu of payment.’ Common forms of consumer credit include credit cards, store cards, motor (auto) finance, personal loans (installment loans), consumer lines of credit, retail loans (retail installment loans) and mortgages. This is a broad definition of consumer credit and corresponds with the Bank of England's definition of "Lending to individuals". Given the size and nature of the mortgage market, many observers classify mortgage lending as a separate category of personal borrowing, and consequently residential mortgages are excluded from some definitions of consumer credit - such as the one adopted by the Federal Reserve in the US.

The cost of credit is the additional amount, over and above the amount borrowed, that the borrower has to pay. It includes interest, arrangement fees and any other charges. Some costs are mandatory, required by the lender as an integral part of the credit agreement. Other costs, such as those for credit insurance, may be optional. The borrower chooses whether or not they are included as part of the agreement.

Interest and other charges are presented in a variety of different ways, but under many legislative regimes lenders are required to quote all mandatory charges in the form of an annual percentage rate (APR). The goal of the APR calculation is to promote ‘truth in lending’, to give potential borrowers a clear measure of the true cost of borrowing and to allow a comparison to be made between competing products. The APR is derived from the pattern of advances and repayments made during the agreement. Optional charges are not included in the APR calculation. So if there is a tick box on an application form asking if the consumer would like to take out payment insurance, then insurance costs will not be included in the APR calculation (Finlay 2009).

See also[link]

• Commercial credit reporting
• Credit bureau
• Credit history
• Credit risk
• Credit score
• Debt
• Default (finance)
• Financial literacy
• Installment credit
• Line of credit
• Payday loan
• Person-to-person lending
• Predatory lending
• Revolving credit
• Risk-return spectrum
• Settlement (finance)
• Sub prime lending
• Social Credit

References[link]

• Finlay, S. (2009). Consumer Credit Fundamentals. Second Edition. Palgrave Macmillan.
• Ingham, G. (2004). The Nature of Money. Polity Press.

External links[link]

Quotations related to Credit at Wikiquote

Look up credit, credited, or crediting in Wiktionary, the free dictionary.

Credit may refer to:

• Debits and credits, a type of book keeping entry
• Credit (creative arts), acknowledging the ideas or other work of writers and contributors
• Course credit, a system of measuring academic coursework
• Credit (finance), the granting of a loan and the creation of debt. It is any form of deferred payment.
  • Credit rating, assessment of credit worthiness
  • Credit score, a representation of credit worthiness
• Credit (casino), a marketing tool that, when used appropriately, can result in significant casino revenues
• Credit (science fiction), a form of currency in some fictional works
• Game credits, a count of the current number of games that can be played in pinball and arcade games

See also[link]

• All pages beginning with "Credit"
• All pages with titles containing "Credit"
• Credibility (or "cred", for short), refers to the objective and subjective components of the believability of a source or message

This disambiguation page lists articles associated with the same title. If an internal link led you here, you may wish to change the link to point directly to the intended article.

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (March 2007)

The Crisis

First Issue of The Crisis: A Record of the Darker Races, November 1910. New York: NAACP, 1910
Editor	W.E.B. Du Bois
Staff writers	Oswald Garrison Villard, J. Max Barber, Charles Edward Russell, Kelly Miller, W.S. Braithwaite, M. D. Maclean
Monthly[1]
Publisher	NAACP
First issue	November 1910 (1910-November)
Company	The Crisis Publishing Company
Country	United States
Based in	New York, NY
Language	English
Website	www.thecrisismagazine.com
ISSN	1559-1573

The Crisis is the official magazine of the National Association for the Advancement of Colored People (NAACP), and was founded in 1910 by W. E. B. Du Bois (editor), Oswald Garrison Villard, J. Max Barber, Charles Edward Russell, Kelly Miller, W.S. Braithwaite, M. D. Maclean.^[2]

The original title of the journal was The Crisis: A Record of The Darker Races. From 1997 to 2003, it appeared as The New Crisis: The Magazine of Opportunities and Ideas, but the title has since reverted to The Crisis. The title derives from the poem "The Present Crisis" by James Russell Lowell.^[1] Published monthly, by 1920 its circulation had reached 100,000 copies. Du Bois proclaimed his intentions in his first editorial:

The object of this publication is to set forth those facts and arguments which show the danger of race prejudice, particularly as manifested today toward colored people. It takes its name from the fact that the editors believe that this is a critical time in the history of the advancement of men. …Finally, its editorial page will stand for the rights of men, irrespective of color or race, for the highest ideals of American democracy, and for reasonable but earnest and persistent attempts to gain these rights and realize these ideals.^[3]

Predominantly a current-affairs journal, The Crisis also included poems, reviews, and essays on culture and history. Du Bois' initial position as editor was in line with the NAACP's liberal programme of social reform and racial equality, but by the 1930s Du Bois was advocating a form of black separatism. This led to disputes between Du Bois and the NAACP resulting in his resignation as editor in 1934. He was replaced by Roy Wilkins.

Although The Crisis was officially an organ of the NAACP, Du Bois had a large degree of control over the periodicals expressed opinion. Du Bois wrote in Dusk of Dawn that he intended for The Crisis to represent his personal opinions:

I determine to make the opinion of the Crisis a personal opinion; because, as I argued, no organization can express definite and clear cut opinions… the Crisis would state openly the opinion of its editor, so long, of course, as that opinion was in general agreement with that of the organization.

Du Bois contends that the periodical suffered during the Great Depression as the "circulation dropped steadily until by 1933 it was scarcely more than ten thousand paid subscriptions." Du Bois left the magazine for both financial and ideological reasons.

Throughout the Du Bois years The Crisis published the work of many young African American writers associated with the Harlem Renaissance. Its greatest era as a literary journal was between 1919 and 1926, when Jessie Redmon Fauset was literary editor. Fauset encouraged such writers as Arna Bontemps, Langston Hughes, Countee Cullen and Jean Toomer.

Following the departure of Fauset and Du Bois, the influence of The Crisis declined. The magazine was unable to sustain the high literary standards it had achieved under Fauset, but it continued to have a powerful political voice.

References[link]

A 1911 copy of The Crisis depicting "Ra-Maat-Neb, one of the black kings of the Upper Nile", a copy of the relief of Nebmaatre I on Meroe pyramid 17.

Du Bois, WEB (1940), Dusk of Dawn, Library of America, ISBN [[Special:BookSources/97809400450332|97809400450332]] .

Partington, Paul, The Moon Illustrated Weekly: Black America's First Weekly Magazine, ISBN 978-0-9602538-2-1 .

External links[link]

• The Crisis, http://www.thecrisismagazine.com/ .
• History, NAACP, http://www.naacp.org/about/history/ .
• The Crisis, Footnote, January 1918, http://www.footnote.com/browsemore/179488128_Boom%20and%20Bust:%201920-1935/ .
• The Crisis, Books, Google, http://www.google.com/search?tbs=bks%3A1&tbo=1&q=The+Crisis+Magazine&btnG=Search+Books#q=The+Crisis+Magazine&hl=en&tbo=1&tbs=bks:1,bkt:m&source=lnt&sa=X&ei=TrrMTILMLJG4sQPMn9CPDg&ved=0CBMQpwU&fp=fd2e97bdff999388 .
• The Crisis, 1, 10–23, The Modernist Journals Project, Nov. 1910 – Apr. 1911, May 1915 – Apr. 1922, http://www.modjourn.org/render.php?view=mjp_object&id=crisiscollection .