Crédit

Crédit, in finance, refers to an arrangement whereby a borrower receives value now and agrees to repay the lender later, usually with interest. The term is used in French-speaking contexts to describe both general lending and specific products; in English contexts, credit denotes the broader system of lending and deferred payment.

Types include consumer credit (personal loans, credit cards), mortgage credit, business or commercial credit, and trade credit (suppliers allow buyers to pay after delivery). In France and other francophone markets, common forms include crédit à la consommation, crédit immobilier, and crédit renouvelable; specialized forms include crédit-bail (lease financing) and crédit d’entreprise.

Credit rests on assessing creditworthiness, using income, existing debt, and credit history. Lenders price risk with an interest rate or APR and outline repayment terms. Fees, penalties, and the cost of funds are reflected in the total cost of credit.

Regulation aims to protect consumers and ensure responsible lending. Where applicable, disclosure requirements, affordability checks, and limits on certain products apply. Examples include the EU’s Consumer Credit Directive and national laws such as France’s Code de la consommation; in English-speaking jurisdictions, U.S. disclosure rules under the Truth in Lending Act and related regulations play similar roles.

Credit supports household consumption, business investment, and financial intermediation, but excessive indebtedness can lead to defaults and financial instability. Across jurisdictions, credit products are governed by a framework that balances access to funds with consumer protection.