credit is when you have to put down a security deposit or use something as collateral.

Credit is generally defined as an agreement where a borrower receives money, goods, or services from a lender and agrees to repay it later, often with interest. It can also refer to a borrower's creditworthiness or history of repaying debts reliably. Specifically, "credit" that involves putting down a security deposit or using something as collateral is known as secured credit. This type of credit requires the borrower to provide a refundable deposit or some form of collateral as security, which the lender can use to recover losses if the borrower defaults. A common example of secured credit is a secured credit card, where the deposit acts as collateral and typically matches the credit limit on the card. So, credit is not only about putting down a security deposit; that applies to a specific type of credit called secured credit. More broadly, credit means borrowing with a promise to repay later under agreed terms. This aligns with the statement: "Credit is when you have to put down a security deposit or use something as collateral"—which specifically describes secured credit, a subset of credit overall. But general credit can exist without collateral, such as unsecured loans or credit cards.