Credit also means becoming indebted to someone for something.
With credit you may use a product, a service or money and pay for it later. By so doing, you incur a debt that must be paid. When you are in debt, you are charged an additional amount for the use of the product, the service or money before you pay for it. The finance charge is the total of all costs which you must pay, directly or indirectly, for credit. The annual percentage rate is the relative cost of credit in percentage terms.