credit

1. In accounting, an entry which either reduces an asset or increases a liability. For example, credits would include you withdrawing funds from your bank account, or using a credit card to make a purchase.

2. A contractual agreement in which a borrower receives something of value now, in exchange for the promise to repay the lender at a later date--typically with interest.


Credit may also refer to the individual or entity's credit worthiness, or ability to repay debt.

Originally from the Latin word credito, of the same meaning.


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