Consumer credit is both a direct and indirect financing form. Under the capitalist system, the main forms of consumer credit are "installment payments" and "consumer loans."

Instalment payment is a technique used by capitalists to sell goods. Its business content is that when consumers buy high-end goods, they can pick up the goods without paying or paying a part of the payment, and then repay the money owed in installments later. If a consumer cannot repay the amount owed on time, the goods purchased will be taken back and the money paid will not be refunded.

Consumer loans are loans provided by banks to consumers through credit loans or mortgage loans, credit cards, check guarantee cards, etc. Consumer loans are generally provided to people with insufficient actual payment ability. House and car buyers are the main targets of consumer loans in capitalist countries. Individuals use the purchased houses, cars, etc. as collateral to obtain mortgage loans.

Extended information

As the level of consumption increases, the proportion of consumers who meet survival needs in the consumption structure decreases, while the proportion of consumption that meets development and enjoyment needs increases, which has a negative impact on the consumption structure. Increased demand for consumer durables.

High-end durable consumer goods usually have higher value and longer service life. They completely rely on family and personal funds to meet the demand for such consumer goods. They generally require a longer period of accumulation and objectively require consumer credit. to meet their consumption needs in advance.

For example, in the United States, the proportion of car purchases with loans is as high as 80%. In 2000, nine out of ten new family cars sold in the United States were financed with loans of one type or another. Interest income generated from new car loans alone is as high as $20 billion. Relevant research points out that without car loans, annual new car sales in the United States would be reduced by at least 50%, to approximately 8 million vehicles.

Consumer credit can also be classified from different perspectives. Classified according to the purpose of the funds, in addition to housing consumption credit and automobile consumption credit mentioned above, it also includes education loans, travel loans, home appliance loans, house repair loans, small consumer loans, etc.

According to the method of loan, it can be divided into direct loan and indirect loan. According to the repayment method of the loan, it can be divided into: one-time repayment upon maturity and installment payment. The former is mostly short-term loan, and the latter is mostly long-term loan.

Baidu Encyclopedia-Consumer Credit