Credit Worthiness



An assessment of the likelihood that a borrower will default on their debt obligations. It is based upon factors, such as their history of repayment and their credit score. Lending institutions also consider the availability of assets and extent of liabilities to determine the probability of default.


Several firms have developed rating systems to determine an individual or company's credit worthiness. It is important for each person to keep track of their credit score because this is the main metric used by institutions when determining if the individual is worthy of a favorable rate.

To learn more about credit worthiness, check out What's a better way to borrow money: overdraft or credit cards?

  1. Credit Rating

    An assessment of the credit worthiness of a borrower in general terms or with ...
  2. Credit Application

    A request for an extension of credit, either orally or in written form. The ...
  3. Standard & Poor's Underlying Rating ...

    A rating for a debt issue on a stand-alone basis without credit enhancements. ...
  4. FICO Score

    A type of credit score that makes up a substantial portion of the credit report ...
  5. Credit Score

    A statistically derived numeric expression of a person's creditworthiness that ...
  6. Credit Crisis

    A crisis that occurs when several financial institutions issue or are sold high-risk ...
  7. Retail Credit Facility

    A financing method which provides loan services to retail consumers for goods ...
  8. Credit Risk

    The risk of loss of principal or loss of a financial reward stemming from a ...
  9. Default

    1. The failure to promptly pay interest or principal when due. Default occurs ...
  10. Default Risk

    The event in which companies or individuals will be unable to make the required ...
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