Credit

Credit is the ability to borrow money or access goods and services with the understanding that you will repay the lender at a later date, usually with interest. It is a financial arrangement in which a lender provides funds or extends a loan to a borrower based on trust that the borrower will fulfill the repayment obligation. Credit can come in many forms, including credit cards, personal loans, mortgages, and lines of credit. A person’s creditworthiness, determined by factors like credit history and income, influences their ability to secure credit and the terms of repayment, such as interest rates and credit limits.