Definition: On a real estate closing statement, a credit is an amount entered in a party's favor, such as money due to that party or an amount reducing what the party must bring to closing.
Example
A buyer receives credit for an earnest-money deposit already paid toward the purchase.
Keep the distinction clear
A credit is not always new cash paid out at closing. In lending, credit can instead mean access to borrowed funds or creditworthiness; use the meaning that fits the question.
Related terms
Earnest Money · Down Payment · Price
Keep studying
Real Estate Prorations: Who Gets Debited and Credited?
References: California DRE: real estate glossary
Pronunciation (US): KRED-it (capitals show stress)
Pronunciation reference: Merriam-Webster
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