Credit

Credit refers to the ability of a borrower to obtain goods, services, or Money with the understanding that payment will be made in the future. It is a financial arrangement that involves a lender providing resources to a borrower, who is expected to repay the lender under agreed terms.

Examples of credit include:

• Credit Cards: Allow consumers to borrow funds up to a certain limit for purchases, requiring repayment with interest.
• Loans: Personal or business loans provided by banks or Financial Institutions, requiring repayment over time.
• Mortgages: Loans specifically for purchasing real estate, secured by the property itself.

Cases of credit include:

• A student taking out a student loan to pay for tuition, agreEINg to repay the amount after graduation.
• A business using a line of credit to purchase Inventory, with the obligation to pay back the borrowed amount plus interest.
• An individual using a credit card to buy a new smartphone, planning to pay off the balance within the billing cycle to avoid interest.