What type of credit is used by individuals such as parents purchasing items for their children?

Personal credit refers to the credit that individuals can obtain for personal use, such as making purchases for themselves or their dependents. In this scenario, when parents buy items for their children, they are typically using credit that is not specifically tied to a particular asset or purchase, such as a home or vehicle. This can include credit cards or personal loans that provide funds for general use or everyday expenses.

Personal credit allows consumers to have more flexibility in making purchases without the constraints of a dedicated loan for a specific item, making it ideal for scenarios where everyday expenses arise, including buying clothing, school supplies, or gifts for children.