When you have a credit account, you have been given the opportunity to borrow money from a lending institution in order to purchase something or to finance another type of expenditure. A credit account allows you to borrow a certain amount of money at a set interest rate, which is repayable over a set period of time. If you are unable to meet the terms of the loan, you may have to pay interest on the outstanding balance and possibly a penalty.

Elaborating on the benefits of having a credit account, according to APPLY NOW, "A credit account allows consumers to borrow money to purchase items or to finance other types of expenditures.