Course: What is credit?
3 minute read
Defining credit
Credit is commonly defined in two ways.
Credit is the ability to access goods or services with the promise of paying later. This is called borrowing.
Credit is also your reputation as a borrower. The trust you build by consistently making good on your promises of paying money back helps lenders see you as a reliable borrower. This is called creditworthiness.
When you have a history of good credit, lenders view you as a good investment, and you may be able to borrow larger amounts of money.
