credit

Credit

1. A contractual agreement in which a borrower receives something of value now, with the agreement to repay the lender at some date in the future. Also, the borrowing capacity of an individual or company.

2. An accounting entry system that either decreases assets or increases liabilities.

Notes:

2. The opposite transaction is a debit.

See also: Bond, Credit Card, Credit Cliff, Credit Enhancement, Credit Spread, Debit, Line of Credit, Mortgage

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Credit

Money loaned.

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credit

1. The ability to borrow or to purchase goods and services with payment delayed beyond delivery.

2. An accounting entry resulting in an increase in liabilities or owners' equity or in a decrease in assets. Compare debit.

3. The balance in an account.