credit
KRED-it
/ˈkrɛdɪt/
The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future; to add money to an account.
Can refer to borrowing power, a positive entry in an account, or recognition for achievement.
The story behind the word. The word 'credit' comes from the Latin verb 'credere', meaning 'to believe, to trust'. This origin perfectly encapsulates the essence of credit: it's based on the lender's trust that the borrower will repay the debt. When you have 'credit', it means someone trusts you to pay them back.
Word relationships
- loan: A loan is a specific sum borrowed; credit is the general ability to borrow or the available borrowing limit.
- trust: Trust is the underlying principle of credit; credit is the financial mechanism.
- debit: Credit is money added or available to borrow; debit is money taken out or owed.
Commonly confused with
- debit: 'Credit' generally refers to money added to an account or the ability to borrow. 'Debit' refers to money taken from an account or an amount owed.
Word family
- creditor (noun): a person or company to whom money is owed.
- creditable (adjective): deserving public acknowledgment and praise but not necessarily outstanding or successful.
Collocations
- credit card
- credit score
- credit limit
- good credit
- bad credit
- extend credit
- credit history
Idioms & expressions
- give credit where credit is due
- credit to (an achievement)
Example sentences
- "She used her credit card to pay for the groceries, planning to pay the balance in full next month." Using a credit card.
- "The store issued a credit to her account for the returned item." Receiving a refund.
Memory hook
To have CREDIT means they CREDE-RE (believe) you will pay them back. BELIEVE to pay
When not to use
Do not confuse with 'credibility' (the quality of being trusted) or 'credo' (a statement of belief).
Fun facts
- The word 'creed' (a statement of belief) also shares the same Latin root 'credere'.
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