What is a credit purchase?

A credit purchase is something you have taken now and will pay for later — goods from a shop you settle at the end of the month, or an item you are paying off in deposits.

You have the item, so it is yours; you still owe for it, so the unpaid balance counts against your net worth. Each payment you log lowers that balance.

It differs from a borrowed loan in what you received: with a credit purchase you took the goods, with a loan you took the money.