A credit account is a financial account that allows a customer to borrow funds up to a specified limit, typically for making purchases, cash withdrawals, or covering expenses, with the obligation to repay the borrowed amount along with any applicable interest and fees.

In the context of a secured credit account (like the one supported by Mbanq Cloud), the account is backed by a collateral deposit held in a reserve account. This collateral minimizes the lender’s risk and ensures that the credit limit is directly tied to the deposited amount.

A credit account typically includes:

Credit limit – The maximum amount the customer can borrow.
Interest rate – The rate charged on outstanding balances.
Payment due dates – Scheduled dates by which at least the minimum payment must be made.
Transaction history – Records of all purchases, payments, and fees.

When linked to a credit card, the credit account facilitates transactions anywhere cards are accepted, while maintaining repayment tracking, payment history, and balance management.