full faith and credit
Full faith and credit is a phrase meaning the United States government officially promises to repay a debt using all of its resources and legal authority. It is considered one of the most reliable guarantees a borrower can give because the government can raise taxes or print money to honor the promise.
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Words beside it
- credit rating
A credit rating is a letter grade assigned by a private company that studies how likely a borrower is to repay its debts. A higher grade means the borrower is considered safer and a lower grade means there is more chance they might not pay.
- credit risk
Credit risk is the chance that the person or organization you lent money to will not pay you back as promised. A higher credit risk means there is a greater possibility of losing some or all of your money.
- Credit score
A number lenders use to guess whether you pay. Driven mostly by paying on time and using little of your available credit.
- Credit spread (options)
Selling one option and buying another further out, collecting a net premium with a capped loss.
- tax credit
This is an amount that directly lowers the tax you owe, dollar for dollar. A credit can sometimes make your bill smaller even when you did not have tax withheld.
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