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What does bank credit mean?

Updated: 9/16/2023
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13y ago

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Bank credit has two meanings, depending on the context.

(1) If you have a financial account (e.g., checking, credit card, etc.), the bank might credit that account for some reason (e.g., refund a fee). The transaction line associated with that action will likely state "bank credit."

(2) The more general meeting is when a financial institution extends credit to an individual or company through a credit card, loan or line of credit.

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