A credit system is a financial framework that allows individuals and businesses to borrow money or obtain goods and services with the promise to pay later. This system is based on trust, where lenders assess the borrower's ability to repay based on their credit history, income, and other factors. In a credit system, various tools like credit cards, loans, and mortgages are used to facilitate transactions. Borrowers are assigned a credit score, which reflects their creditworthiness. A higher score typically leads to better borrowing terms, while a lower score may result in higher interest rates or loan denials.