Interest is applied differently to credit than to savings. When applied to credit, it is an additional amount that a borrower has to pay to the creditor. Credit interest can also be fixed or compound. The seconds are more common.

EXPLANATION

When one does not have the money to spend on something important and necessary, one available option is to pay with credit. Credit has a risk and cost in acquisition, so it is important to understand all the attributes of credit and the responsibilities that accompany borrowing money. It is also important
understand that taking risks is not a danger; The problem is not knowing how to mitigate those risks.

Credit exists for various uses: credit to invest, to purchase durable goods, for housing, for emergencies, and for consumption. These expenses are often not possible without credit from a creditor. However, the risk and the expected return influence the cost assigned to that credit. More about this source textSource text required for additional translation information.