Purpose credit

Purpose credit

Credit used for the purpose of buying, carrying or trading in securities.

Purpose Credit

Money that an investor may borrow from a broker in order to buy securities. Purpose credit is secured by cash and/or securities in a margin account. An investor who buys with purpose credit can realize huge gains if the price of the security moves in a favorable direction; however, he/she also takes on a great deal of risk because it may not move in such a direction. Purpose credit is also called a margin loan. See also: minimum maintenance, margin call, nonpurpose loan.
References in periodicals archive ?
CFC a privately held consumer finance company that was established in 2005 and issues general purpose credit cards with the MasterCard brand.
Visa Inc., MasterCard Incorporated, and American Express Company) and general purpose credit card issuers (JPMorgan Chase & Co., Bank of America Corporation, and Citigroup Inc.).
The revolving credit facility follows the closing of its previous USD 90 million and USD 100 million revolving credit facilities associated with Fortiva general purpose credit card receivables and a USD 167.3 million asset backed securitization supporting Fortiva branded point-of-sale credit card receivables.
For example, special purpose credit card banks can't accept deposits under $100,000 and special purpose trust banks don't have access to the Federal Reserve discount window.
* Develop special purpose credit programs, as detailed under ECOA, for the benefit of specific groups of consumers in meeting their identified credit needs.
top-six player in the US general purpose credit card market; ongoing
In the fourth scenario, and perhaps the most common, a consumer purchases goods from a merchant using a general purpose credit card or other open-ended credit plan where the merchant has no referral relationship with the credit card issuer.
CONSUMERS HAVE BECOME EXTREMELY CREDIT CONSCIOUS, steering away from the use of general purpose credit cards, according to a new report from Mercator Advisory Group, Boston.
"Based on current spending data, it's clear that US consumers have become extremely credit conscious, steering away from the use of general purpose credit cards.
The second bit of news is more ambiguous: The credit reporting agency TransUnion said the number of people using general purpose credit cards fell by more than 11 percent in the third quarter (July to September) compared with the same period a year ago.
Analysis by credit reporting agency TransUnion found that use of general purpose credit cards bearing MasterCard or Visa logos, or issued by Discover or American Express, fell more than 11 per cent in the third quarter, compared with the July to September period last year.
Number of general purpose credit cards in circulation in the U.S.