Final answer:
Credit means a loan, an agreement in which the lender (creditor) supplies the borrower with money, goods or services which is to be returned in future. Credit includes loans, credit cards, lines of credit, and mortgages.
Step-by-step explanation:
The word "credit" has many meanings in the financial world, but it most commonly refers to a contractual agreement in which a borrower receives a sum of money or something else of value and commits to repaying the lender at a later date, typically with interest.
It includes various forms such as loans, credit cards, lines of credit, and mortgages. When using credit responsibly, it can help individuals make big purchases and build a positive credit score, which is important when seeking future loans.
Common examples include car loans, mortgages, personal loans, and lines of credit. Essentially, when the bank or other financial institution makes a loan, it "credits" money to the borrower, who must pay it back at a future date.