A world without credit could be a very interesting utopia where there would be no opportunity to borrow money from one another and therefore no one could claim interest on this loan. Credit is what makes up most of the economy nowadays, because the credit market is several times higher than the global financial markets and therefore credit plays a very important role in economic growth.
Loans for all kinds of situation
Credit allows people to borrow money when they do not have the means to start a business, finance larger acquisitions and carry out other activities that require large financial investments. Credits allow young entrepreneurs to borrow money to start their own businesses, as well as borrow money from big companies to expand their business and secure more stock in stock before the holiday seasons.
Of course, the credit is risky and the future can always be unpredictable and therefore the repayment of the loan will not always be so easy, but for those who manage to take the credit at the right time and in the right place and what they intended to do, then they will become investors and lend money to future generations. Whether certain types of credit are better than others, we can also discuss a lot and deliberately, and basically I believe that credit is a much better option for companies than for private individuals, as individuals usually spend that money on simple consumer products and goods, which is definitely not so how to invest money in the company as well as in your development.
But also expensive consumer goods such as apartments and cars can be beneficial to take on credit, otherwise there will be no way to collect the necessary money to buy these things. Credit itself is a very good invention, but how this credit is used today is not so profitable, because at the moment governments are lending money to banks with very low interest rates and therefore banks are more likely to distribute this money to their customers.
In an ideal world, loans would be secured by investment and by any investor willing to risk and give money to someone else, whether he would get the money back in time, and the interest rate would be high enough to cover that risk. Nowadays, when credits are used for all this kind of situation, where fast credit and other types of loans do not exist at all, it is hard to imagine, but too much credit and too much credit are not good either, because then they negatively affect your future, because you get this borrowed money early or you will have to pay back late and you will be able to spend less on your monthly income for different purchases.
In a society without credit, there should be some other ways to provide funds for large projects, such as crowd funding, or money collecting and then money for projects, but it is likely that the world economy would grow much slower and services and products would not. invented as fast and as effective as it is today.