Creditors are individuals or institutions that lend money or extend credit to others. They expect repayment, often with interest, within a specified time frame. Common types of creditors include banks, credit card companies, and private lenders. When someone borrows money, they become a debtor to the creditor. Creditors play a crucial role in the economy by providing the funds necessary for individuals and businesses to make purchases or invest in opportunities. They assess the creditworthiness of borrowers to determine the risk of lending. This assessment often involves reviewing a borrower’s credit history and financial stability.