Credit (from
Latin credit, "
(he/she/it) believes") is the
trust which allows one party to provide
money or
resources to another party where that second party does not
reimburse the first party immediately (thereby generating a
debt), but instead arranges either to repay or return those resources (or other materials of equal value) at a later date. The resources provided may be financial (e.g. granting a
loan), or they may consist of
goods or services (e.g. consumer credit). Credit encompasses any form of deferred payment. Credit is extended by a
creditor, also known as a
lender, to a
debtor, also known as a
borrower.