Definition

1. Noun:
   • A line of credit extended for personal or household use: "Consumer credit" refers to money that is lent to individuals or families, rather than businesses, for the purpose of purchasing goods and services for personal consumption. It is not intended for investment or commercial activities.

Usage

• "Consumer credit" is a financial term used to describe loans, credit cards, and other credit arrangements made available to the general public for personal spending.
• It is typically used in contexts discussing economics, personal finance, banking, and retail.

Examples

• Noun:
  • The bank offers various forms of consumer credit, including personal loans and credit cards.
  • A rise in consumer credit often indicates increased public confidence in the economy.
  • Managing your consumer credit responsibly is crucial for maintaining a good credit score.

Advanced Usage

• "Consumer credit reporting": The system of collecting and sharing information about an individual's borrowing and repayment history.
  • Lenders check your consumer credit report before approving a mortgage.
• "Consumer credit counseling": Professional advice provided to individuals to help them manage debt and improve their financial situation.
  • After accumulating significant debt, she sought help from a consumer credit counseling service.

Variants and Related Words

• Consumer debt (n): The total amount of debt held by individuals from consumer credit.
  • High levels of consumer debt can be a risk to economic stability.
• Revolving credit (n): A type of consumer credit, like a credit card, where the borrower can use funds up to a limit, repay, and reuse them.
  • A credit card is the most common example of revolving credit.

Synonyms

• Personal loan: A specific type of consumer credit where a lump sum is borrowed and repaid in installments.
• Retail credit: Credit offered directly by stores for purchasing their goods.

Related Phrases

• To extend consumer credit: To offer or grant a loan or credit line to a consumer.
  • The store decided to extend consumer credit to qualified customers to boost sales.
• Consumer credit agreement: The formal contract outlining the terms of a consumer credit arrangement.
  • Before you sign the consumer credit agreement, make sure you understand all the fees involved.

Noun

1. a line of credit extended for personal or household use