The main ways of consumer credit

1. Sell on credit. Short-term credit provided by retailers to consumers, that is, selling goods through deferred payment. Western countries often use credit cards to settle accounts regularly.

Second, installment payment. When consumers buy high-end consumer goods, they only pay part of the payment, and then pay the rest by raising interest rates by stages according to the contract. If the consumer fails to repay the arrears on time, the goods he bought will be taken back and the money he has paid will not be refunded.

Third, consumer loans. Loans provided by banks to consumers through credit loans or mortgage loans, credit cards and check guarantee cards. Consumer credit can be divided into buyer's credit and seller's credit, the former is to issue loans directly to buyers of consumer goods; In the latter case, loans are issued to commercial enterprises that sell consumer goods by installment, or banks sign contracts with commercial enterprises that sell goods on credit and pay the goods to commercial enterprises in cash.

I. Basic concepts

Consumer credit is also called retail credit. Credit provided by banks or enterprises to consumers. Under the capitalist system, the main forms of consumer credit are "installment payment" and "consumer loan". Installment payment is a skill for capitalists to sell goods. Its business content is that when consumers buy high-end goods, they can get the goods without paying or paying part of the money, and then repay the arrears in installments. If the consumer can't repay the money on time, the goods he bought will be taken back and the paid money will not be returned. Consumer loans are loans provided by banks to consumers through credit loans or mortgage loans, as well as credit cards and check guarantee cards. Consumer loans are generally provided to people who are unable to pay in reality. Buyers of houses and cars are the main targets of consumer loans in capitalist countries, and individuals take the purchased houses and cars as guarantees.

Second, housing credit.

30-50% of the loan balance, while personal residential loans account for about 60% of real estate loans. In China, housing mortgage loan is usually called mortgage loan. The so-called mortgage loan refers to the problem that commercial banks solve the difficulty of developers selling houses and users buying houses. A financing method that provides the borrower with housing purchase funds through the developer. The essence of this kind of loan is to require the developer to provide the buyer (borrower) with guarantee or secured mortgage loan with the property right of the house purchased (about to be purchased or already purchased) as collateral. The term of residential loan is long, generally 10-30 years, and the house itself is used as collateral to pay in installments.

The traditional housing mortgage loan is characterized by fixed re-examination and equal repayment (that is, the monthly repayment amount is equal during the loan period). In the 1970s, under the background of increasing interest rate fluctuation, commercial banks in western countries introduced new types of residential mortgage loans: first, high-interest mortgage loans, that is, during the whole loan period, the loan interest rate is regularly adjusted according to the change of the benchmark interest rate, and the benchmark interest rate is usually served by the government bond interest rate or the national residential mortgage interest rate for a certain period. The second is the mortgage loan with progressive payment, that is, according to the pre-arranged schedule, the repayment amount is increased every month, so that the actual burden of the borrower is generally balanced throughout the loan period.