Credit is a term usually used to refer to the transfer of money, goods or services on the promise of repayment at a future date. Thus it represents an amount of money that will be paid at some future date, in return for benefits received earlier. Credit is sometimes used to refer to the financial standing or status of a business or individual, that is, an amount of money for which the business/individual can be trusted. More formally, credit can be defined as the capacity that an individual or organization has for getting economic value on trust, in return for an expected future repayment. Credit is both provided (by the creditor) and taken (by the debtor). Credit is thus a cooperative (trust) relationship between seller and buyer or between creditor and debtor in which both parties stand to benefit in some way.

There are many types of transaction which involve creditors and debtors. It is common to classify different classes of credit as follows. First, trade credit or commercial credit is where businesses deliver goods or services at home or abroad on invoices to be paid later. This represents credit that businesses extend to one another to finance the production and distribution of goods. Second, there is bank credit, which involves long- or short-term financing to individuals or businesses. In the latter case, it finances working capital or the acquisition of plant and equipment. This can be represented by the issuance of bonds or other proofs of indebtedness. A subcategory would be property credit, consisting of mortgages secured on real estate. Finally, there is consumer or personal credit, which comprises advances made to individuals to enable them to purchase goods or services on a deferred payment basis. There is a wide variety of consumer credit products available and financial services companies are always introducing more, but most products can be classified as either revolving credit or fixed-term credit.