What is Credit?

Credit, to put simply, is when you (the debtor)  borrow money from a lender (a person, a bank, etc) but must repay it at a later date. Credit can come in different forms, including credit cards and student loans.

It often comes with interest, which is the cost of borrowing money. In addition, borrowers must pay the money before a certain date, or they will be in debt.

Investopedia

Read this article to learn more : Credit: What It Is and How It Works (investopedia.com)