Credit

Credit Description Credit is a financial arrangement that allows a party (the borrower) to obtain goods, services, or money immediately, with a promise to pay the principal amount plus any agreed-upon interest or fees at a later date. It is fundamentally based on trust and the assessment of the borrower's creditworthiness, typically measured by a credit score. Credit is essential for economic activity, enabling major purchases (like homes and cars) through loans and providing revolving access to funds via credit cards. Managing credit responsibly is crucial for securing better interest rates and achieving long-term financial goals.