A Creditor is a person or institution that extends credit or loans money to an individual or entity. They act as a lender and are typically legally obliged to repay the money given. A creditor can be a bank, credit card company, investment firm, or any other type.There are many reasons for needing a loan. Most commonly it is to buy a home or vehicle, but it can also be for a myriad of other reasons. It is important to understand that a loan is an agreement between two entities. In order to be successful in a loan, it is important to know what type of agreement you are entering into. The best way to determine what type of agreement you are entering into is to know what a creditor is. This blog will help you understand what a creditor is and how they work.A creditor extends credit by creating a loan contract or providing a line of credit. This allows entities to borrow without money up-front. Credit is extended on the expectation that the borrower will be able to repay the loan in full, or repay a portion of the loan depending on the payment agreement and the credit terms offered.
