What is credit and how is it useful?

Credit refers to the ability to borrow money or access goods and services with the promise to pay later. It is useful as it allows individuals and businesses to make large purchases, invest in opportunities, and manage cash flow effectively. Good credit can also lead to lower interest rates and better loan terms, making it easier to finance major expenses like homes or education. Ultimately, credit plays a crucial role in facilitating economic transactions and fostering financial growth.