What context can I use each word in?
Learn when and how to use these words with these examples!
creditor
Example
The bank is my creditor because I owe them money. [creditor: noun]
Example
The creditor has the right to take legal action if the debtor fails to pay back the loan. [creditor: noun]
lender
Example
The lender approved my loan application. [lender: noun]
Example
I borrowed money from my friend who acted as the lender. [lender: noun]
Good things to know
Which word is more common?
Lender is more commonly used than creditor in everyday language. Lender is a more general term that can be used in various contexts, while creditor is typically associated with legal and financial contexts.
Whatโs the difference in the tone of formality between creditor and lender?
Creditor is more formal and legalistic than lender. Creditor is typically used in legal and financial contexts, while lender can be used in both formal and informal contexts.
