Credit Reference

AAA

DEFINITION of 'Credit Reference'

A credit reference can be a report from a credit agency for either a business or an individual. The term can also be used to mean a letter from a bank or other financial institution with whom a company has done business, confirming to third party that the company or individual is known to the financial firm as a good client.

INVESTOPEDIA EXPLAINS 'Credit Reference'

Credit references are generally used to determine the creditworthiness of a person or individual. Credit agencies are used most often for this purpose, although individual letters of reference are sometimes necessary. For example, an overseas business wishing to establish its credentials in the United States may obtain a number of credit references from other businesses, banks, vendors and customers.

RELATED TERMS
  1. Credit Rating

    An assessment of the credit worthiness of a borrower in general ...
  2. Dun & Bradstreet - D&B

    A company that provides commercial credit information and reports ...
  3. Credit Bureau

    An agency that researches and collects individual credit information ...
  4. Credit Score

    A statistically derived numeric expression of a person's creditworthiness ...
  5. Credit Report

    A detailed report of an individual's credit history prepared ...
  6. Credit Card Authorized User

    Definition of an authorized user of a credit card.
Related Articles
  1. 5 Keys To Unlocking A Better Credit ...
    Credit & Loans

    5 Keys To Unlocking A Better Credit ...

  2. What's On A Consumer Credit Report? ...
    Credit & Loans

    What's On A Consumer Credit Report? ...

  3. Check Your Credit Report
    Credit & Loans

    Check Your Credit Report

  4. The Debt Ratings Debate
    Personal Finance

    The Debt Ratings Debate

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center