Credit is an agreement between a borrower and a lender, where the borrower agrees to pay the funds back to the lender at a later date. Lenders, also referred to as a creditors, will extend credit when they feel confident that a borrower will pay the debt back, along with any interest or finance charges.
A lender will use your credit history as a guide when deciding whether to extend credit to you. Your credit history is a record of your borrowing and repayment practices over time.
When you borrow money from a lender, the amount you owe is referred to as debt. Debt is an obligation to pay money back though a deferred payment or series of payments. As the borrower, you are the debtor, and the lender is the creditor.