Definition

1. Noun:
   • A commercial arrangement allowing deferred payment: A "credit account" is a formal agreement between a business and a customer where the customer can purchase goods or services immediately but pay for them at a later date, typically on a monthly billing cycle.
   • A record of such an arrangement: It also refers to the specific record or ledger entry maintained by the business to track the customer's purchases, payments, and outstanding balance under this agreement.

Usage Examples

• Noun:
  • The store offered her a credit account, so she could buy the furniture now and pay over six months.
  • Please check your credit account statement for any discrepancies.
  • He settled his credit account in full before the due date.

Advanced Usage

• "To have an account on credit": This is a more descriptive phrase meaning to possess a credit account with a seller.
  • We have an account on credit with our main supplier, which simplifies our procurement process.

Variants and Related Words

• Charge account (n): A very similar type of account, often used interchangeably with "credit account," particularly in retail contexts.
• Revolving credit account (n): A specific type of credit account where the customer has a credit limit and can carry a balance from month to month, paying interest on the outstanding amount.
• Account (n): The broader term for a formal business relationship involving the recording of financial transactions.

Synonyms

• Charge account: An account allowing purchases on credit.
• Open account: A credit arrangement where payment is deferred.

Related Phrases

• "On account": As a partial payment or using a credit account.
  • I put $50 down on account and will pay the rest next month.
• "To open a credit account": To establish a new credit arrangement with a business.
  • You can apply to open a credit account online.

Noun

1. credit extended by a business to a customer