What "credit" means in finance

A credit is a contractual agreement in which a borrower receives money, goods, or services from a lender, with the promise to pay it back at a later date, usually with interest. It is a form of borrowing that allows individuals or businesses to make purchases or investments that they cannot afford to pay for in cash upfront. The borrower's ability to repay the credit, including interest and fees, is based on their creditworthiness, which is determined by factors such as their credit score, income, and debt-to-income ratio.