A credit agreement must be signed by both parties in order to avoid any subsequent dispute. A credit agreement contains the following information: A credit agreement is essential, regardless of the case to which it is granted. Even if the credit is given to a friend or family member, it is still better to have a credit agreement. It serves as a legal document favorable to the settlement of disputes that may arise later between the borrower and the lender. A credit agreement is a contract between the borrower and the lender that sets the conditions for granting the loan to the borrower. A loan can be taken out by a lending institution, friends, family members, etc. .