Credit

The promise by a borrower to repay a lender in the future in order to buy or borrow in the present. The right to defer payment of debt. When the item of value is money, the agreement is often called a loan . When the item of value is a product, the purchaser will buy it "on credit." The repayment usually has interest attached. Credit can also be slang term used to describe one’s FICO score or credit worthiness. If someone has “poor” credit, they may not qualify for a loan. Conversely, if you have “very good” credit, or A Credit, you may qualify for a loan and have very low interest rates to repay. The worse one’s credit, the higher the likelihood that they will be turned down for a loan or be forced to pay a higher interest rate.

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