Bank Credit

Bank credit refers to the amount of money a bank is willing to lend to individuals or businesses, based on their creditworthiness and ability to repay. It includes loans, credit cards, and overdraft accounts. When you receive bank credit, you're borrowing funds that must be paid back with interest over time. Essentially, bank credit helps facilitate spending and investment, supporting economic activity. The bank assesses your financial stability before extending credit, ensuring that lending is manageable and reduces risk. Proper management of bank credit is crucial for maintaining financial health and building a positive credit history.