What is the meaning of free credit at this website?

Google translate says that credit means the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

How can credit be free?

Does free credit mean that the customer don't have to pay a certain amount of money in the future?

  • 1
    Credit is payment deferred. Money has a time value. $100 today is worth more than $100 a year from now, even in the impossible scenario where you could be absolutely assured that payment will be made. In other words: credit comes with interest. Unless the creditor waives that interest, as the advertisers in your example are doing. In other words: unless it's free credit.
    – Dan Bron
    Apr 18 '16 at 3:30
  • 1
    As generally understood, the term "free credit" means that if a purchaser follows the "rules" laid out by the seller, the seller (or the agency the seller designates) will allow the purchaser to pay for the purchase in "installments" over a period of months, without having to pay any "interest" on the borrowed money. In effect, the seller pays the interest on the money, as a discount on the purchase price.
    – Hot Licks
    Apr 18 '16 at 3:36
  • @HotLicks. Can I say that free credit = zero interest installment?
    – Brian
    Apr 18 '16 at 3:42
  • 4
    Remembering of course the economist's favourite saying: there is no free lunch. So when you're offered (interest-)free credit you are not being charged interest, but don't think for a moment that the price itself does not have that credit risk baked in.
    – Brad
    Apr 18 '16 at 8:23

What you mentioned is short for interest-free creditInvestorwords

noun a credit or loan where no interest is paid by the borrower
"The company gives its staff interest-free loans"

In your case, it appears the goods are sold on credit without interest. Also, the comments explain it well.

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