Last Update: Oct 07, 2022.

Submitted by: Holli Fortunna
Score: 79/100 (55 votes)


Who is considered a creditor?

A creditor is an individual or institution that extends credit to another party to borrow money usually by a loan agreement or contract. Creditors such as banks can repossess collateral like homes and cars on secured loans, and take debtors to court over unsecured debts.