Credit in United Kingdom

Definition of Credit

In accordance with the work A Dictionary of Law, this is a description of Credit :

1. The agreed deferment of payment of a debt. Under the Consumer Credit Act 1974, credit also includes any other form of financial accommodation, including a cash loa It does not include the charge for credit but does include the total price of goods hired to an individual under a *hire-purchase agreement less the aggregate of the deposit and the total charge for credit.

2. (in the law of evidence) The credibility of a witness. It must be inferred by the *trier of fact from the witness’s demeanour and the evidence in the case. A witness may be cross-examined as to credit (i.e. impeached) by reference to his *previous convictions, bias, or any physical or mental incapacity affecting the credibility of his evidence.

Credit averse in the Context of Mortgages

When a borrower has a poor credit history, has previously been declared bankrupt or has outstanding County Court Judgements, they are often described as credit averse. People with averse credit ratings often have to pay higher interest rates on a mortgage.

Similar Terms

Credit

Credit

A 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.

Credit agencies

Credit agencies

Companies such as Equifax or Experian that are often used by lenders to assess your financial background and determine the level of risk involved with lending you money.

Credit checks

Credit 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 in the Context of Mortgages

A 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.

Similar Terms

Credit agencies

Credit agencies

Companies such as Equifax or Experian that are often used by lenders to assess your financial background and determine the level of risk involved with lending you money.

Credit averse

Credit averse

When a borrower has a poor credit history, has previously been declared bankrupt or has outstanding County Court Judgements, they are often described as credit averse. People with averse credit ratings often have to pay higher interest rates on a mortgage.

Credit checks

Credit 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.

Resources

See Also

Credit history

Credit period

Credit rating

Credit reference agency

Credit union

Creditor

Resources

See Also

Credit history

Credit period

Credit rating

Credit reference agency

Credit union

Creditor