Credit Definition | Definition

Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender | wealth | return | grant | asset | check | fafsa | will | wage | fdic | bank | loan | bond | fund | spac | debt | atm | apr | definitionsat some date in the future, generally with interest. Credit also refers to an accounting entry that either decreases assets or increases liabilities and equity | stocks | expense | economy | pension | bitcoin | 401(k) | definition son the company's balance sheet. Additionally, on the company's income statement, a debit reduces net income, while a credit increases net income.