loan / credit
Loading your saved state.
loan
An amount of money that a bank or another institution lends to a person or company for a certain period of time and that usually has to be repaid with interest.
Wir haben einen Kredit aufgenommen, um unser Haus zu renovieren.
We took out a loan to renovate our house.
The most important verb used with a loan is 'aufnehmen' (to take out). Other common verbs are 'beantragen' (to apply for), 'bekommen' (to get), 'zurückzahlen' (to pay back), or 'tilgen' (to repay/pay off).
Viele junge Familien müssen einen Kredit aufnehmen, um ein Haus zu bauen.
Many young families have to take out a loan in order to build a house.
The phrase 'auf Kredit kaufen' means that you buy something without paying for it in full immediately. So you pay for it later or in installments.
Er hat sich sein neues Auto auf Kredit gekauft.
He bought his new car on credit.
A general 'Kredit' (loan, meaning 1) is often a large sum for a specific purpose. A 'Kredit' (credit line) on a checking account (meaning 2) is usually a smaller, flexible limit (overdraft facility) that the bank grants you.
Für das Auto braucht er einen Kredit von der Bank.
He needs a loan from the bank for the car.
The idiom 'seinen Kredit verspielen' has a figurative meaning. It means that you lose someone's trust or good opinion.
Mit dieser Lüge hat er bei mir seinen ganzen Kredit verspielt.
With that lie, he lost all credibility with me.
In accounting, 'Kredit' (credit) is a technical term for the credit side, that is, the right side of an account. This meaning is only relevant in this specific context.
Wir buchen den Zahlungseingang im Kredit.
We post the incoming payment as a credit.
financing
'die Finanzierung' and 'der Kredit' can both come up when paying for larger things. 'Finanzierung' is the general way money is provided for a purpose. That can be your own money, funding, or a loan. 'Kredit' is more specific: you borrow money from a bank or an institution and usually pay it back later with interest. Learners can easily confuse the words because a loan is often part of financing. But not every 'Finanzierung' is a 'Kredit'.
Mein Freund nimmt einen Kredit auf, weil er die Wohnung renovieren möchte.
My friend is taking out a loan because he wants to renovate the apartment.
Wegen der hohen Kosten sucht der Verein noch eine Finanzierung für das Projekt.
Because of the high costs, the club is still looking for financing for the project.