Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
Default means the inability or failure to make any payment on the specified date or meet any commitment or obligation. It also means the pre-fixed and standard option for any program or task, where there is no other alternative given. It also means the failure to execute anything as per legal provisions, while also the failure to complete or compete in anything. It also means any choice that is automatically made due to the absence of alternatives.
In the real estate or property sector, a default means the failure/inability to repay a home loan or mortgage. It may equate to missing the monthly EMI payments or defaulting on the loan. If this happens for a couple of months, the bank will be imposing a penalty/fine for the same. Banks or financial institutions may take legal measures against willful defaulters.
