credit

(redirected from credits)
Also found in: Dictionary, Thesaurus, Legal, Idioms, Encyclopedia.

Credit

Credit

1. An agreement between a buyer and a seller in which the buyer receives the good or service in advance and makes payment later, often over time and usually with interest. For example, a buyer may purchase a computer on credit for $600 and pay $100 per month over several months with interest. One of the most common ways of buying on credit is to use a credit card, but many companies have their own credit schemes. A steady flow of credit in an economy is considered important for financial health. See also: Accounts receivable, Accounts payable.

2. The amount in a bank account or some other account. For example, if one has $800 in his/her bank, he/she is said to have an $800 credit. Likewise, if he/she receives a check for another $200, he/she receives a further $200 credit.

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.

Credit.

Credit generally refers to the ability of a person or organization to borrow money, as well as the arrangements that are made for repaying the loan and the terms of the repayment schedule.

If you are well qualified to obtain a loan, you are said to be credit-worthy.

Credit is also used to mean positive cash entries in an account. For example, your bank account may be credited with interest. In this sense, a credit is the opposite of a debit, which means money is taken from your account.

credit

  1. a financial facility which enables a person or business to borrow MONEY to purchase (i.e. take immediate possession of) products, raw materials and components, etc. and to pay for them over an extended time period. Credit facilities come in a variety of forms including BANK LOANS and OVERDRAFTS, INSTALMENT CREDIT, CREDIT CARDS and TRADE CREDIT. Interest charges on credit may be fixed or variable according to the type of facilities offered or, in some cases, loans may be interest-free as a means of stimulating business. See CREDIT CONTROL, MONETARY POLICY, EXPORTING, LETTER OF CREDIT, BILL OF EXCHANGE, CONSUMER CREDIT ACT 1974, INTEREST RATE.
  2. to acknowledge (in DOUBLE-ENTRY ACCOUNTS) the receipt of services rendered to a firm. This is done by making an accounting entry which records the value of goods or services received by the company in the company's account of the supplier of the goods or services. A credit entry in a company's double entry accounts represents either a decrease in the company's assets or an increase in its liabilities. See DEBIT.

credit

a financial facility that enables a person or business to borrow MONEY to purchase (i.e. take immediate possession of) products, raw materials and components, etc., and to pay for them over an extended time period. Credit facilities come in a variety of forms, including BANK LOANS and OVERDRAFTS, INSTALMENT CREDIT, CREDIT CARDS and TRADE CREDIT. Interest charges on credit may be fixed or variable according to the type of facilities offered or, in some cases, ‘interest-free’ as a means of stimulating business.

In many countries CREDIT CONTROLS are used as an instrument of MONETARY POLICY, with the authorities controlling both the availability and terms of credit transactions. See CONSUMER CREDIT ACT 1974, INTEREST RATE.

credit

(1) In finance,the availability of money.(2) In accounting, a liability or equity entered on the right side of the page in double-entry accounting. The concept is confusing to most consumers because an accounting “credit” does not mean more “stuff” such as property or money; it merely indicates the side of the page on which the entry is posted.The other entry is called a debit.

References in classic literature ?
Why, truly," replied Monte Cristo, determined not to lose an inch of the ground he had gained, "my reason for desiring an `unlimited' credit was precisely because I did not know how much money I might need.
Now, sir, you have but to say the word, and I will spare you all uneasiness by presenting my letter of credit to one or other of these two firms.
Since I maintain that I have no credit, and you maintain I have.
He made out a credit slip for 119,000 pounds, and, passing it across the counter with a roll of notes and cheques, asked for his shares.
Martin added his debts and found that he was possessed of a total credit in all the world of fourteen dollars and eighty-five cents.
sighed he, "were we only on the other side the Alps, then we should have summer, and I could get my letters of credit cashed.
To appeal to wealthy friends in the City would be to let those friends into the secret of his embarrassments, and to put his credit in peril.
He maintained that the poverty of Russia arises not merely from the anomalous distribution of landed property and misdirected reforms, but that what had contributed of late years to this result was the civilization from without abnormally grafted upon Russia, especially facilities of communication, as railways, leading to centralization in towns, the development of luxury, and the consequent development of manufactures, credit and its accompaniment of speculation--all to the detriment of agriculture.
Although I attach no sort of credit to the fantastic Indian legend of the gem, I must acknowledge, before I conclude, that I am influenced by a certain superstition of my own in this matter.
I cannot object,' said Mrs General--'though even that is disagreeable to me--to Mr Dorrit's inquiring, in confidence of my friends here, what amount they have been accustomed, at quarterly intervals, to pay to my credit at my bankers'.
The right thing was to correct them severely, if they were other than a credit to the family, but still not to alienate from them the smallest rightful share in the family shoebuckles and other property.
It is not uncommon for people who are much better fed and taught than Christopher Nubbles had ever been, to make duties of their inclinations in matters of more doubtful propriety, and to take great credit for the self-denial with which they gratify themselves.