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.
Earnest money means the amount paid for confirming a contract, or the deposit made to any seller, that is indicative of the good faith of the buyer with regard to purchasing any property. This money will give the buyer more time for obtaining financing and also getting the title search, inspections, and property appraisals done before closing the deal. Earnest money may be taken as a deposit for purchasing a home or even a deposit into an escrow account. It is sometimes called money that is paid in good faith as well.
Many buyers in the real estate sector pay earnest money or the initial deposit/token amount of good faith to property sellers. They express their intention to purchase the property, and then get more time for inspecting the property, searching the title, and also undertaking the valuation of the same. This is around 1-3% of the selling price in most cases. This amount is sometimes kept in an escrow account, until the final deal gets completed.
