Definition for: Credit
The term "credit" has multiple meanings. Credit means the promise to pay in the future in order to buy or borrow in the present-- in essence the right to defer payment of debt. For example, credit cards allow you to purchase and receive goods immediately, but not have to pay until the credit card statement is issued in the future (usually on a monthly basis). If a person or company is financially strong, they are referred to as creditworthy, likely to repay indebtedness. Credit can also means a positive account into a financial entry, such as when a bank credits your account with interest accrued on funds deposited with the bank.
