Okuzeka
Finance & Banking vocabulary · Loans & Credit

Creditworthiness

Meaning in finance & banking, with examples

/ˈkredɪtwɜːðinəs/nounCommon term

In finance & banking, creditworthiness means: How likely a person or company is to repay borrowed money on time, judged from income, existing debt, payment history and financial strength.

In Turkish: kredi değerliliği, kredibilite, kredi itibarı

How it is used

Used in credit analysis and lending policy. Banks assess or check a borrower's creditworthiness before lending. For individuals it is measured with credit scores; for companies and countries with financial analysis and credit ratings. The adjective is 'creditworthy'.

Example sentences

  1. We assess the creditworthiness of every SME using its last three years of financial statements.

  2. Late payments on other loans have damaged the customer's creditworthiness.

Common collocations

  • assess creditworthiness
  • creditworthiness assessment
  • creditworthy borrower
  • credit scoreA number that shows how likely a person is to repay debts, calculated from their credit history, such as past loans, card use and late payments.
  • credit ratingAn assessment, usually by a rating agency, of how likely a company, bank or country is to repay its debt, shown with letters such as AAA or BB.
  • credit bureauAn organisation that collects information about how people and companies use and repay credit, and provides credit reports and scores to lenders.
  • credit riskThe risk that a borrower or another party will not pay back money it owes on time or in full, causing a loss for the lender.
  • borrowerA person or organisation that receives money from a lender and agrees to pay it back, usually with interest.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.