Credit Worthiness

Definition

• A measure of how likely an individual or entity is to repay their debt obligations. Many factors go into the assessment of one's credit worthiness including an individual or entity's debt repayment history, credit score, assets, liabilities, and income.

Synonyms
credit risk

Related Terms and Acronyms

• Bad Credit — Definition,
  • Someone who carries a higher credit risk.
• Bad Credit Loan — Definition,
  • A loan taken out by someone with bad credit.
• Credit Bureau (CB) — Acronym, Very Important,
  • A company that collects and sells information about how people handle credit. It issues credit reports that list how individuals manage their debts and make payments, how much untapped credit they have available and whether they have applied for any loans. The reports are made available to individuals and to creditors who profess to have a legitimate need for the information.
  ➥ Company that determines one's credit worthiness.
• Credit History — Definition,
  • A record of an individual's or company's past borrowing patterns and whether or not debts were repaid on time.
• Credit Risk — Definition,
  • The risk of loss assumed under a financial contract that a borrower or a counter-party to a loan or other credit-related contract may default or fail to fulfill its obligations.
• Credit Score — Definition,
  • Also referred to as a 'Beacon Score' is a number, between 300 and 900, that reflects a person's credit history. Lenders calculate this number using a computer system as part of the process for assigning rates and terms to the loans they grant.
• Equifax (EF) — Company Est. 1899, Canada, Important,
  • A major credit bureau company in Canada along with Trans Union.
• Experian (XP) — Company, Canada,
  • One of the Big Three credit bureaus, along with Equifax and Trans Union, Experian not normally used in Canada.
• Good Credit — Definition,
  • Someone who carries little credit risk.
• Guarantor — Definition,
  • Someone who guarantees something.
• No Credit History — Definition,
  • To have no record of an individual's credit worthiness.