Folded when credit was derestricted (7)
I believe the answer is:
creased
'folded' is the definition.
(creasing is a kind of folding)
'credit was derestricted' is the wordplay.
I cannot really understand how this works, but
'credit' could be 'cr' (abbreviation) and 'cr' is present in the answer.
The remaining letters 'eased' is a valid word which might be clued in a way I don't understand.
This explanation may well be incorrect...
'when' acts as a link.
Can you help me to learn more?
(Other definitions for creased that I've seen before include "Crumpled - red case (anag)" , "Groovy" , "Wrinkled, rumpled" , "Needing ironing" , "Folded" .)