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What is a Creditor?

By CREDKRED.com

What is a Creditor?

A creditor or lender is a person or institution to whom money is owed. The first party (creditor), in general, has provided some property or service (i.e. money) to the second party (debtor) under the assumption that the second party will return an equivalent property or service.

For example…

When you purchase a car, you have to find a lender. The lender is also called the creditor. If your approved for a the loan and decide to accept the terms, you become the debtor. The debtor has to pay back the loan to the creditor.

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