creditworthiness
Học thuậtThân thiện
Definition
Noun The quality of being considered a reliable and safe borrower, based on an assessment of one's financial history and ability to repay debts. It indicates trustworthiness in financial matters.
Usage
Creditworthiness is used to describe a person's or entity's financial reliability. It is a key factor considered by lenders, such as banks, before approving a loan or issuing credit. * A high creditworthiness score can help you get a loan with a lower interest rate. * The bank will assess your creditworthiness by reviewing your income, existing debts, and payment history. * His consistent repayment of previous loans has greatly improved his creditworthiness.
Advanced Usage
- "To establish creditworthiness": To build a financial history that demonstrates reliability as a borrower.
- Getting a small credit card and paying the bill on time is a common way for young adults to establish creditworthiness.
- "A measure of creditworthiness": A specific indicator or score (like a FICO score) used to gauge financial reliability.
- Credit scores are a widely used measure of creditworthiness.
Variants and Related Words
- Creditworthy (adjective): Describing someone who is considered a reliable borrower.
- Only creditworthy applicants will be approved for this mortgage.
- Credit (noun): The ability to obtain goods or services before payment, based on trust that payment will be made in the future.
Synonyms
- Financial reliability
- Credit standing
- Solvency (specifically refers to the ability to pay all debts)
Antonyms
- Credit risk
- Uncreditworthiness
Noun
- trustworthiness with money as based on a person's credit history; a general qualification for borrowing