- credit extended by a retail store, bank, finance company, or other lender, chiefly for the purchase of consumer goods.[1925-30]
* * *Short-and intermediate-term loans used to finance the purchase of commodities or services for personal consumption.The loans may be supplied by lenders in the form of cash loans or by sellers in the form of sales credit. Installment loans, such as automobile loans and credit-card purchases, are paid back in two or more payments; noninstallment loans, such as the service credit extended by utility companies, are paid back in a lump sum. Consumer loans usually carry a higher rate of interest than business loans. See also credit.
* * *▪ financeshort- and intermediate-term loans used to finance the purchase of commodities or services for personal consumption or to refinance debts incurred for such purposes. The loans may be supplied by lenders in the form of cash loans or by sellers in the form of sales credit.Consumer credit in industrialized countries has grown rapidly as more and more people earn regular income in the form of fixed wages and salaries and as mass markets for durable consumer goods (consumer good) have become established.Consumer loans fall into two broad categories: installment loans, repaid in two or more payments; and noninstallment loans, repaid in a lump sum. Installment loans include (1) automobile loans, (2) loans for other consumer goods, (3) home repair and modernization loans, (4) personal loans, and (5) credit card purchases. The most common noninstallment loans are single-payment loans by financial institutions, retail-store charge accounts, and service credit extended by doctors, hospitals, and utility companies.Finance charges on consumer loans generally run higher than the interest costs of business loans, although the way costs are quoted may disguise the actual charges. In the United States the Truth in Lending Act (part of the Consumer Credit Protection Act of 1968) requires lenders to state finance charges in ways that allow borrowers to compare the terms being offered by the lending companies.The Consumer Credit Protection Act in the United States and the Consumer Credit Act (1974) and Consumer Protection Act (1987) in Great Britain are examples of legislation enacted to protect borrowers. Credit bureaus (credit bureau) such as Equifax, Experian, and TransUnion provide information about an individual's creditworthiness to potential lenders. (Consumers may request a copy of their credit report.) Many organizations help consumers manage their credit.
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Look at other dictionaries:
consumer credit — n: credit extended by merchants or banks to finance the purchase of consumer goods (as home appliances) or services (as travel or hotel accommodations) compare consumer debt at debt Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
Consumer credit — Credit granted by a firm to consumers for the purchase of goods or services. Also called retail credit. The New York Times Financial Glossary * * * consumer credit consumer credit ➔ credit1 * * * consumer credit UK US noun [U] (also personal… … Financial and business terms
consumer credit — credit a firm grants to consumers for the purchase of goods or services. Also called retail credit. Bloomberg Financial Dictionary * * * consumer credit consumer credit ➔ credit1 * * * consumer credit UK US noun [U] (also persona … Financial and business terms
Consumer Credit — Потребительское кредитование без обеспечения /недвижимостью/ Словарь терминов и сокращений рынка forex, Forex EuroClub … Финансовый словарь
consumer credit — ☆ consumer credit n. credit extended for buying goods and services for one s personal use through installment plans, charge accounts, short term loans, etc … English World dictionary
consumer credit — noun a line of credit extended for personal or household use • Hypernyms: ↑credit line, ↑line of credit, ↑bank line, ↑line, ↑personal credit line, ↑personal line of credit • Hyponyms: ↑ … Useful english dictionary
consumer credit — Short term loans to individuals for purchase of consumer goods and services See also Consumer Credit Code Consumer Credit Protection Act consumer credit sale consumer credit transaction credit card Equal Credit Opportunity Act … Black's law dictionary
Consumer Credit — A debt that someone incurs for the purpose of purchasing a good or service. This includes purchases made on credit cards, lines of credit and some loans. Also referred to as consumer debt . Consumer credit is basically the amount of credit used… … Investment dictionary
consumer credit — Short term loans to the public for the purchase of goods. The most common forms of consumer credit are credit accounts at retail outlets, personal loans from banks and finance houses, hire purchase, and credit cards Since the Consumer Credit Act… … Big dictionary of business and management
consumer credit — N UNCOUNT Consumer credit is money that is lent to people by organizations such as banks, building societies, and shops so that they can buy things. New consumer credit fell to $3.7 billion in August … English dictionary