Credit

Credit is the ability to borrow money or access goods and services with the understanding that you'll pay back later, usually with interest. When you have good credit, lenders trust you to repay what you owe, often resulting in better loan terms and lower interest rates. Your creditworthiness is assessed through your credit history and credit score, which reflect your past borrowing and repayment habits. Essentially, credit enables individuals and businesses to make purchases or investments today, relying on future income to settle those obligations.