Credit/Loan

Credit refers to the ability or permission granted to an individual or entity to borrow money or access goods, services, or resources with the agreement to repay the borrowed amount in the future. It is based on trust and the expectation that the borrower will fulfill their repayment obligations as agreed upon. Credit can come in various forms, such as loans, credit cards, lines of credit, or trade credit. It plays a crucial role in personal finances and financial transactions, allowing individuals and businesses to make purchases or investments before having the full cash amount available. Creditworthiness is often assessed by factors such as credit history, income, debt-to-income ratio, and credit score, which help lenders or creditors determine the risk associated with lending money or extending credit.