Credit in the Thirteen Colonies

In the thirteen colonies, credit was a way of doing business, or buying things with money that you didn't actually have. Credit was given to colonists for things like buying land, clothes, and even food. Colonists could borrow money from merchants or other people, and wouldn't have to pay it back right away. They would agree to pay it back over a period of time with interest added on. Most of the credit was given with trust, but sometimes the person giving out the credit would ask for something like a document or a piece of land as a guarantee that the money would eventually be repaid. Credit was very useful in the thirteen colonies because it allowed colonists to get the things they wanted and needed even if they didn't have enough money right away.