fundamentals
credit
The ability to borrow money or access goods and services with the understanding that payment will be made later.
Example
"Good credit allowed her to get a mortgage at a low interest rate."
💡 Memory Tip
CRED-it — cred means trust. Credit is trust extended by a lender.
Etymology
From Latin 'credere' meaning 'to believe, trust' — a lender trusts you to repay.
Common Misspellings
credtcreitcredditcredi
Related Terms
See Also
interest