Credit1. Recorded as positive (+) in the balance of payments, any transaction that gives rise to a payment into the country, such as an export, the sale of an asset (including official reserves), or borrowing from abroad. Opposite of debit. 2. A loan. For example, a trade credit.
CreditA measurement of a person's ability to pay bills on time. Several companies track individuals' credit histories by detailing late or missed payments on loans, credit cards and other debts.
CreditIn the trading terms between companies, credit is the value of goods which one company will supply to another before payment is necessary. So a supplier might extend credit of £10,000 to Company B and allow 60 days from the contract date before payment is due. If Company B orders goods worth £15,000, Company A would request payment of £5,000 to bring the account with the credit terms, even if the 60 days are not yet up.
Confirmed Letter of CreditConfirmed Letter of Credit
A letter of credit which a bank other than the bank that opened it agrees to honor as though they had themselves issued it. This additional confirmation is in addition to the obligation of the bank which issued the letter of credit.
Credit enhancementCredit enhancement
Purchase of the financial guarantee of a large insurance company to raise funds.
National Foundation for Consumer CreditNational Foundation for Consumer Credit
A nonprofit organization that seeks to help consumers who have taken on too much debt by helping them work out payment plans and supplying credit counseling.
Credit checksCredit checks
These are checks made when you try to borrow money or purchase goods on hire purchase, and are used to determine the risk of lending you money. They will examine your credit history and check for payment defaults and what you owe to other financial organisation. A credit agency is often used.
Credit historyCredit history
If you have a history of bad debts, county court judgements or bankruptcy to your name, you may not be eligible for a mainstream mortgage. To help ensure you are a good credit risk, a lender may require references from your existing lender, bank or landlord. In addition to this, many lenders will make use of the services of one of the two large credit agencies, Experian and Equifax. These offer a credit inquiry or a full credit application, which show details of any existing credit arrangements or county court judgements against you.
Further SuggestionsRevolving credit agreement
National Credit Union Administration
Credit Rating Agencies
Best interests of creditors test
Credit linked security
Transferable letter of credit
Credit reference agency
Line of credit
Export Credits Guarantee Department
full faith and credit
Syndicated Eurocredit loans
Open end credit