Definition

1. Noun:
   • A system for allowing people to purchase goods or services and pay for them later: A structured method or set of rules that enables individuals or businesses to obtain something of value (like goods, services, or money) with a promise to pay at a future date, often involving interest or fees.
   • An institutional framework for managing credit: The organized network of financial institutions, policies, and regulations that govern the extension and repayment of credit within an economy.

Usage Examples

• Noun:
  • The store introduced a new credit system to attract more customers.
  • A robust national credit system is essential for economic growth.
  • Understanding the company's internal credit system is important for managing client accounts.

Advanced Usage

• "to operate on a credit system": To function using a framework where payment is deferred.
  • Many wholesale suppliers operate on a credit system with trusted business partners.

Variants and Related Words

• Credit (n): The ability to obtain goods or services before payment, based on trust that payment will be made in the future.
  • She has excellent credit and can get a loan easily.
• Creditworthiness (n): The assessment of how likely a borrower is to repay debt.
  • Banks evaluate a customer's creditworthiness before approving a loan.

Synonyms

• Deferred payment plan: A specific arrangement allowing payment at a later date.
• Lending framework: The structured system for providing loans.

Related Phrases

• Line of credit: A preset borrowing limit that can be used at any time.
  • The business secured a line of credit from the bank.
• Credit rating: An evaluation of a borrower's credit risk.
  • His good credit rating helped him get a lower interest rate.

Related Idioms

• "Buy now, pay later": A common phrase describing the principle behind many credit systems.
  • The store's promotion encouraged customers to buy now, pay later.

Noun

1. a system for allowing people to purchase things on credit