1

credit

play
noun cred·it \ ˈkre-dit \
Updated on: 26 Jul 2017

Definition of credit

1 :reliance on the truth or reality of something
  • gave credit to everything he said
  • Give no credit to idle rumors.
2 a :the balance in a person's favor in an account
b :an amount or sum placed at a person's disposal by a bank
c :the provision of money, goods, or services with the expectation of future payment
  • long-term credit
; also :money, goods, or services so provided
  • They exhausted their credit.
d (1) :an entry on the right-hand side of an account constituting an addition to a revenue, net worth, or liability account
(2) :a deduction from an expense or asset account
e :any one of or the sum of the items entered on the right-hand side of an account
f :a deduction from an amount otherwise due
3 a :influence or power derived from enjoying the confidence of another or others
b :good name :esteem; also :financial or commercial trustworthiness
4 archaic :credibility
5 :a source of honor
  • a credit to the school
6 a :something that gains or adds to reputation or esteem :honor
  • He took no credit for his kindly act.
b :recognition, acknowledgment
  • quite willing to accept undeserved credit
7 :recognition by name of a person contributing to a performance (such as a film or telecast)
  • the opening credits
8 a :recognition by a school or college that a student has fulfilled a requirement leading to a degree
b :credit hour
  • earned 15 credits last semester

Examples of credit in a Sentence

  1. banks that extend credit to the public

  2. You need to have a strong credit history and a good job in order to get a mortgage.

  3. A credit of $50 was added to your account.

  4. All the credit must go to the play's talented director.

  5. She's finally getting the credit she deserves.

  6. He shared the credit with his parents.

  7. You've got to give her credit; she knows what she's doing.

Recent Examples of credit from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'credit.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of credit

Middle French, from Old Italian credito, from Latin creditum something entrusted to another, loan, from neuter of creditus, past participle of credere to believe, entrust — more at creed

Synonym Discussion of credit

belief, faith, credence, credit mean assent to the truth of something offered for acceptance. belief may or may not imply certitude in the believer.
    • my belief that I had caught all the errors
faith almost always implies certitude even where there is no evidence or proof.
    • an unshakable faith in God
credence suggests intellectual assent without implying anything about grounds for assent.
    • a theory now given credence by scientists
credit may imply assent on grounds other than direct proof.
    • gave full credit to the statement of a reputable witness
influence, authority, prestige, weight, credit mean power exerted over the minds or behavior of others. influence may apply to a force exercised and received consciously or unconsciously.
    • used her influence to get the bill passed
authority implies the power of winning devotion or allegiance or of compelling acceptance and belief.
    • his opinions lacked authority
prestige implies the ascendancy given by conspicuous excellence or reputation for superiority.
    • the prestige of the newspaper
weight implies measurable or decisive influence in determining acts or choices.
    • their wishes obviously carried much weight
credit suggests influence that arises from the confidence of others.
    • his credit with the press

2

credit

verb

Definition of credit

transitive verb
1 :to trust in the truth of :believe
  • find his story hard to credit
2 :to supply goods on credit to
3 archaic :to bring credit or honor upon
4 a :to enter upon the credit side of an account
b :to place an amount to the credit of
  • credit his account with ten dollars
5 a :to consider usually favorably as the source, agent, or performer of an action or the possessor of a trait
  • credits him with an excellent sense of humor
b :to attribute to some person
  • They credit the invention to him.

Examples of credit in a Sentence

  1. Your payment of $38.50 has been credited to your account.

  2. The bank is crediting your account for the full amount.

  3. They credited the rescue to his quick thinking.

Recent Examples of credit from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'credit.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of credit

partly from 1credit; partly from Latin creditus, past participle — see 1credit

credit Synonyms

Synonym Discussion of credit

ascribe, attribute, assign, impute, credit mean to lay something to the account of a person or thing. ascribe suggests an inferring or conjecturing of cause, quality, authorship.
    • forged paintings formerly ascribed to masters
attribute suggests less tentativeness than ascribe, less definiteness than assign.
    • attributed to Rembrandt but possibly done by an associate
assign implies ascribing with certainty or after deliberation.
    • assigned the bones to the Cretaceous period
impute suggests ascribing something that brings discredit by way of accusation or blame.
    • tried to impute sinister motives to my actions
credit implies ascribing a thing or especially an action to a person or other thing as its agent, source, or explanation.
    • credited his teammates for his success

Financial Definition of CREDIT

credit

What It Is

Credit is an agreement whereby a financial institution agrees to lend a borrower a maximum amount of money over a given time period. Interest is typically charged on the outstanding balance.

In the accounting world, a credit is also a journal entry reflecting an increase in assets.

How It Works

Credit cards and home equity lines are examples of credit. Your bar tab is another form of credit.

Not all lines of credit are alike. The borrower's creditworthiness and relationship with the lender affect the terms of the lending agreement, as does bank competition, prevailing market conditions and the size of the line in question. Some lenders apply fixed amortization rates to outstanding balances on a line of credit, while some permit interest-only payments for a time, followed by a lump-sum payment of the principal. If the lender has the right to demand repayment at any time, this is called demand credit.

As with any debt, a wide array of specific terms and requirements may apply to a line of credit. It is common in a revolving line of credit, for example, for the lender to charge a company a commitment fee to keep the unborrowed portion of the line available to the borrower. Lenders also may require a compensating balance, liens on the borrower's assets or collateral on a percentage of the line. This is called securing the line. Some lines of credit are unsecured and are thus not backed by specific assets (this often the case with credit cards). Interest rates on unsecured lines are generally higher than secured lines to compensate the lender for the added risk in the event of a default.

Why It Matters

Credit gives borrowers the ability to purchase goods and services (or for companies, credit gives borrowers the ability to invest in projects) that they normally might not be able to afford. By lending the money, creditors make money by charging interest while helping borrowers pursue their projects. However, as many people have learned the hard way, taking on too much debt can cause a lifetime of damage.


CREDIT Defined for English Language Learners

credit

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noun

Definition of credit for English Language Learners

  • : money that a bank or business will allow a person to use and then pay back in the future

  • : a record of how well you have paid your bills in the past

  • : an amount of money that is added to an account


credit

verb

Definition of credit for English Language Learners

  • : to add (an amount of money) to a total

  • : to add money to (an account)

  • : to give honor or recognition to (someone or something) for doing something or for making something happen


CREDIT Defined for Kids

1

credit

play
noun cred·it \ ˈkre-dət \

Definition of credit for Students

1 :recognition or honor received for some quality or work
  • A doctor was given credit for the discovery.
  • She got extra credit for her report.
2 :the balance in an account in a person's favor
3 :money or goods or services allowed to a person by a bank or business with the expectation of payment later
4 :good reputation especially for honesty :high standing
5 :a source of honor or pride
  • You are a credit to your school.
6 :a unit of schoolwork
  • I took two credits in Spanish.
7 :belief or trust in the truth of something
  • These rumors deserve no credit.

Word Root of credit

The Latin word credere, meaning “to believe,” gives us the root cred. Words from the Latin credere have something to do with believing someone or something. Something credible is easy to believe, while something incredible is so out of the ordinary that it is difficult to believe. Giving credit to something someone says is believing that it is true.


2

credit

verb

Definition of credit for Students

credited; crediting
1 :to give recognition or honor to for something
  • The team credited their coach for the championship.
2 :to place something in a person's favor on (a business account)
  • We will credit your account with ten dollars.
3 :believe 2
  • Don't credit a statement from a stranger.

Law Dictionary

1

credit

noun cred·it

legal Definition of credit

2 a :the balance in an account which may be drawn upon and repaid later — compare loan
b :the use of resources (as money) in the present obtained by the debtor's promise to repay the creditor in the future usually with interest as compensation to the creditor and often secured by a pledge of property or the right to attach the debtor's income in case of a failure to repay — see also consumer credit — compare debt
c :financial reputation
  • to borrow money on the credit of the United States
  • U.S. Constitution art. I
3 a :a deduction from an expense or asset account
b :a reduction of an amount otherwise due; especially :tax credit
  • a credit for child-care expenses
— compare deduction, exclusion, exemption

2

credit

transitive verb

legal Definition of credit

1 :to supply goods on credit to
2 :to trust in the truth of
3 a :to enter upon the credit side of an account
b :to place an amount to the credit of
  • credit his account with ten dollars


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