Credit is another
term for loan. Credit is often used in connection with unsecured loans.
You get credit from a company when you get billed with an invoice
instead of having to pay when you buy the item(s). For example your
phone bill is a type of credit, where you have used your phone and pay
for the time you have used it afterwards.
Very often (or almost
always) the company giving you credit will do a credit search before
granting you a credit. If they find that you have record of not paying
your bills in time you are likely not to get credit. Often people does
not think about the consequences of not paying their bills. They do not
realize that this can give them a "bad credit" and makeing it
more or less impossible to get a loan or credit from any other
companies, banks or credit companies.