credit

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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 periodicals archive ?
Although PNB presented its schedule of creditable withholding taxes for the years 2000 to 2009 and 2011 to 2013, the court noted that this was not enough proof.
Some commenters told federal agencies that consumers no longer need creditable coverage certificates, because PPACA requires individual plans to sell coverage on a guaranteed-issue basis during open-enrollment periods.
Under this subsection, a tax is creditable if, judging by its predominant character, it is imposed on the basis of gross receipts or gross receipts computed under a method that is likely to produce an amount that is not greater than fair market value.
Eligible individuals who do not enroll in Part D when first available, but who enroll later, have to pay higher premiums permanently, unless they have creditable prescription drug coverage.
Tees Valley United also put up a creditable performance against Enterprise before losing 2-0.
And the Irish did enough to earn themselves a creditable draw in Prague.
Czech Rep N Ireland 0 0 NORTHERN IRELAND manager Nigel Worthington had reasons to be cheerful as his side finished their World Cup qualifying campaign with a creditable draw at the Synot Tip Stadium.
Summary: A Diomansy Kamara strike helps secure Fulham a creditable draw in their Europa League clash with CSKA Sofia
Holmfirth Harriers' English Under 14 Junior champion of 2008, Tom Halton, moved up this season to the Under 16s, where he put in a very creditable performance to finish in fifth place.
Eighteen members of the 40-member Senate filed bills offering new ways for state, county and municipal employees to obtain creditable pension service, including one that would extend pension benefits to all state college and university faculty, as well as to all higher education professional workers who served in the Peace Corps.
Summary: India on Monday proved that it is a side very keen to acquire champion status by converting a no-win situation into a very creditable draw on the fifth and final day of the second Test against New Zealand at the MaClean Park in Napier.
The division helped owner Carphone Warehouse achieve a "very creditable performance" for the three months to December 27.