A happy couple smiles and embraces in a wooded area.

The Definition of Credit and Why You Need It

8 min read
Last Updated: April 10, 2025

Key Takeaways

  1. Credit is a system that allows you to borrow money to make purchases on the condition that you pay it back.
  2. Lenders determine whether to give you credit based on your credit score and the information in your credit report.
  3. You can take steps to improve your credit with responsible credit habits, like paying your bills on-time and keeping your credit usage low.

See if you're pre-approved

Next steps

You may also be interested in

Share article

Was this article helpful?

Glad you found this useful. Could you let us know what you found helpful?
Sorry this article didn't help you. Can you give us feedback why?

Was this article helpful?

Thank you for your feedback

You are now on a Capital One webpage. Please be sure to review Capital One’s Terms & Conditions and Privacy Notice.