Credit rating

Credit rating,

Definition of Credit rating:

  1. Individual credit is scored from by credit bureaus such as Experian and TransUnion on a three-digit numerical scale using a form of Fair Isaac (FICO) credit scoring. Credit assessment and evaluation for companies and governments is generally done by a credit rating agency such as Standard & Poor's (S&P), Moody's, or Fitch. These rating agencies are paid by the entity that is seeking a credit rating for itself or for one of its debt issues.

  2. Evaluation of the timely repayment ability of an individual, firm, or debt security (such as a bond). Credit rating is built up on the basis of the (1) credit history, (2) present financial position, and the (3) likely future income. Credit reporting agencies, such as the US firm Dun & Bradstreet, collect, store, analyze, summarize, and sell such information. Also called debt rating.

  3. A credit rating is a quantified assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation. A credit rating can be assigned to any entity that seeks to borrow money—an individual, corporation, state or provincial authority, or sovereign government.

Synonyms of Credit rating

Bank credit, Book credit, Borrowing power, Cash credit, Commercial credit, Consumer credit, Credit, Credit insurance, Credit union, Financial condition, Hire purchase plan, Installment credit, Installment plan, Investment credit, Line of credit, Never-never, Rating, Tax credit, Tick, Trust

How to use Credit rating in a sentence?

  1. My husband and I were going to get a new car, but we were denied because my husbands Credit Rating was too low.
  2. A credit rating not only determines whether or not a borrower will be approved for a loan or debt issue but also determines the interest rate at which the loan will need to be repaid.
  3. A credit rating or score can be assigned to any entity that seeks to borrow money—an individual, corporation, state or provincial authority, or sovereign government.
  4. Individual credit is rated on a numeric scale based on the FICO calculation, bonds issued by businesses and governments are rated by credit agencies on a letter-based system.
  5. Before I could buy a house, I had to look into my credit rating which was really bad right now and could prevent me from getting it.
  6. If you have a good credit rating you will be able to take advantage of getting loans to help grow your business.
  7. A credit rating is a quantified assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.

Meaning of Credit rating & Credit rating Definition