What is the meaning of credit?

Answer by  HiHoJoe (43)

Credit is an abstract entity that poses as a stand-in for future payment. In a way, credit is another way of paying with an "IOU. " Therefore a credit card pays bills with money that is credited to the buyer to be payed at a later date.

Answer by  barkley (951)

Credit in the finance area means the granting of resources to one individual from another individual or institution based on their promise to pay the money back plus fees and interest (generally the promise is in writing via a promissory note or some written form of obligatin).

Answer by  tamarawilhite (17883)

Credit refers to either someone's debt level or their credit-worthiness. The credit someone has is the debt level that they owe, if they paid it all at once and in full. Their credit-worthiness is how likely lenders see them in paying all debt on time and in full each month.