Credit - Definition - Law Dictionary Home Dictionary Definition credit

credit

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1 : recognition see also full faith and credit
2 a : the balance in an account which may be drawn upon and repaid later compare loan
b : the use of resources (as money) in the present obtained by the debtor's promise to repay the creditor in the future usually with interest as compensation to the creditor and often secured by a pledge of property or the right to attach the debtor's income in case of a failure to repay see also consumer credit compare debt
c : financial reputation [to borrow money on the of the United States "U.S. Constitution art. I"]
d : letter of credit
3 a : a deduction from an expense or asset account
b : a reduction of an amount otherwise due
;esp
: tax credit [a for child-care expenses] compare deduction, exclusion, exemption
vt 1 : to supply goods on credit to
2 : to trust in the truth of
3 a : to enter upon the credit side of an account
b : to place an amount to the credit of [ his account with ten dollars]