Definition of Creditworthiness:
Creditworthiness is how a lender determines that you will default on your debt obligations, or how worthy you are to receive new credit. Your creditworthiness is what creditors look at before they approve any new credit to you.
Creditworthiness is determined by several factors including your repayment history and credit score. Some lending institutions also consider available assets and the number of liabilities you have when they determine the probability of default.
Creditors judgment of an entitys current and future ability, and inclination to honor debt obligations as agreed upon. It is usually based on the credit history, credit rating, and character of the entity.
How to use Creditworthiness in a sentence?
- The primary attribute banks are looking at when deciding whether to offer credit to businesses or individuals is their creditworthiness . The most common factor being the assigned credit score based on past history.
- Creditworthiness is determined by several factors including your repayment history and credit score.
- Improving or maintaining your creditworthiness is as simple as making your payments on time.
- If you are trying to decide whether to give someone a product on lay away you need to figure out their creditworthiness .
- Creditworthiness is how a lender will tell if you will default on your debt obligations.
- In addition to a cover letter and resume, many employers now are checking prospective employees creditworthiness and overall dependability by asking for their credit scores.
Meaning of Creditworthiness & Creditworthiness Definition