Credit is money you borrow and use to buy anything from groceries to a new home, assuming you’d repay the lender later, usually at a fee. It’s acquiring things in life when you lack the financial means. You’re spending money from a bank or credit card business. Here are the different types of credit.
Open credit is a preapproved loan between a financial institution and a borrower that can be used several times up to a specific limit and then repaid before the due date. The lender will specify the preapproved amount in the lender-borrower agreement.