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  • Credit means the right granted by a creditor to an applicant to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment. See:  12 CFR § 1002.2(j)
    • Business credit refers to extensions of credit primarily for business or commercial (including agricultural) purposes, but excluding extensions of credit of the types described in § 1002.3(a)-(d). See: 12 CFR § 1002.2(g)
    • Consumer credit means credit extended to a natural person primarily for personal, family, or household purposes. See: 12 CFR § 1002.2(h)
  • In the accounting context, credit is a form of debt. It is the entry on the right-hand side of the balance sheet. Credit can decrease the value of an asset or it can increase the amount of capital, liability or revenue. 

[Last updated in February of 2022 by the Wex Definitions Team]