Routledge Dictionary of Economics, Second Edition
1 A loan, or an agreement to lend money, to be repaid at a later date.
2 Bank lending (in macroeconomics) as credit is chiefly analysed within the context of the money supply
3 All the sources of finance available to firms (including TRADE CREDIT) and to households.
In the past two decades there has been a great increase in the amount of credit given to households on the basis either of collateral (a house in the case of a building society mortgage) or of CREDIT SCORING for hire purchase expenditure on CONSUMER DURABLES. The creation of new credit instruments, e.g.
the credit card, has resulted in an expansion in the total volume of credit.
References
Beckman, T.N. and Foster, R.S. (1969) Credits and Collections: Management and Theory, 8th edn, New York: McGraw-Hill.
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