credit
Let an agent explain credit and its kinds, relay how it works and is regulated from financial and regulatory sources, describe credit assessment and risks in general terms, and route personal financial decisions to qualified advisers without giving individual advice.
Research draft, second pass
A second pass drafted this model: the structure a model of this thing needs, and what is known about it in the world. The line under this one says how the second half was obtained - researched against sources, or recalled without web access, in which case nothing here was read anywhere and every claim is a lead to verify. Unreviewed either way.
written by Claude from model knowledge without web access - no source was read, every claim is a lead to verify
Researched by: Claude
Purpose and description
Let an agent explain credit and its kinds, relay how it works and is regulated from financial and regulatory sources, describe credit assessment and risks in general terms, and route personal financial decisions to qualified advisers without giving individual advice.
The provision of money, goods or services now in exchange for a promise of payment later, usually with interest, in forms including consumer credit such as credit cards and hire purchase, mortgage loans including adjustable-rate mortgages, investment loans, trade and discount credit, and international credit between states and institutions, extended by banks and other lenders on the basis of creditworthiness; credit underpins economies, is regulated for consumer protection and stability, and carries risks of over-indebtedness and default.
What it is for: Financing purchases and investment over time.
It can be explain kinds and mechanics; relay regulation; describe assessment and risks; route personal decisions.
Distinguishing features
Deferred payment
Interest and terms
Creditworthiness
Regulated lending
What it looks like
Not a visible object; loans, cards and agreements.
Physical character
global household debt: about 60 trillion USD - estimates
interest: price of credit concept - expressed as APR
How it is recognised
Deferred payment arrangement
Consumer credit, hire purchase, mortgages including adjustable-rate, investment loans, discount and international credit
A loan is one form of credit; debt is the resulting obligation; equity is ownership rather than credit
Related models
is a kind of - in registry terms
is a kind of - in registry terms, from the borrower side
is priced by - and fees
is assessed through - and creditworthiness
In practice
Families and kinds
consumer credit including credit cards and hire purchase
mortgage loans including fixed and adjustable-rate mortgages
business, trade and investment loans
discount credit and bills
international and sovereign credit
microcredit
credit lines and revolving credit
Standards and regulation
Consumer credit laws such as the EU Consumer Credit Directive and US Truth in Lending Act
Mortgage regulation
Banking prudential rules such as Basel III
Credit reporting and data protection laws
Failure modes and hazards
Over-indebtedness and default
Predatory lending
Agents giving personal financial advice
Systemic credit crises
Also called
+1
Where this came from
wikidata · CC0 1.0
Also registered as vr.tr.credit-2
Drafted structure
Bundle to layer to finding to question, as the second pass will find it: 4 bundles · 8 layers · 8 findings · 16 questions.
Understand What credit is.
Definition.
Definition
Definition and kinds.
Definition
Definition.
- What is credit, and how do consumer, mortgage, business and international credit differ? definition
- Is the question about credit in general, a product type or a personal financial decision, which needs an adviser? boundary
Mechanics
Mechanics.
Mechanics
Mechanics.
- How do interest, repayment schedules, adjustable rates and hire purchase work? definition
- Which entry fits the specific product? action
Assess Assessment and risk.
Practice.
Creditworthiness
Creditworthiness.
Creditworthiness
Creditworthiness.
- How do lenders assess creditworthiness through scores, reports and affordability? provenance
- Which references are standard? provenance
Risks
Risks.
Risks
Risks.
- What risks do borrowers and lenders face, and how do defaults and credit crises arise? provenance
- Which entry fits credit risk? action
Regulate Regulation.
Regulation.
Consumer
Consumer protection.
Consumer
Consumer.
- What consumer credit and mortgage protections exist, and where can borrowers get help? provenance
- Is the user in financial difficulty, which needs debt advice services? boundary
Prudential
Prudential regulation.
Prudential
Prudential.
- How do banking rules govern credit provision and stability? provenance
- Which sources are cited? provenance
Context History and economy.
Context.
History
History.
History
History.
- How has credit developed from ancient lending through banking to modern consumer credit? provenance
- Which entry fits the history of credit? action
Economy
Credit and the economy.
Economy
Economy.
- How does credit drive growth and cycles, with positions attributed? provenance
- Which entry fits credit cycle? action
What the second pass must settle
- Should mortgage loan and consumer credit be separate primary entries?
- How should regulatory sources be linked?
- The registry entry has merged aliases naming specific products; should they be split off?