Definition - What does Credit mean?
Credit is value that is given from a lender to a borrower with a promise from the borrower to repay the debt in the future. Typically, credit must be paid back with interest. In the context of the law, people who take credit from lenders usually are legally obligated to repay the credit. If they don't, then they can face garnishment, or can have their assets seized to repay the debt.
Justipedia explains Credit
Entities that lend credit are often banks and credit card companies. These entities profit from the interest that gets paid along with the credit repayment from the borrowers. The interest rate determines how much interest will be paid. The higher the rate, the larger the amount of interest to be paid. Borrowers who are said to have "bad credit," or who have a repayment history that is not sound, are often charged higher interest rates in order to receive credit. This is because they represent a higher risk.
Step by Step: Here’s What Happens When You're Charged with a Crime