InvestorWords.com

credit



Definitions (3)

1. A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some later date. When a consumer purchases something using a credit card, they are buying on credit (receiving the item at that time, and paying back the credit card company month by month). Any time when an individual finances something with a loan (such as an automobile or a house), they are using credit in that situation as well.

2. The borrowing capacity of an individual or company.

3. Tax credit.




Featured Tip

Two Credit Cards are Better than One, But More Isn't Always BetterDon't have "too many credit cards." There are good reasons to have at least two credit cards, but some people collect a stack of cards, including those from stores and oil companies, several of which ... Read more

Search for a term


Enter your email address to get our free Term of the Day newsletter!

Related Terms

5 C's of credit -

line of credit -

collateral -

credit is ...

... part of the Lending & Credit and Taxes subjects.

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z