Credit Approval
/ˈkrɛdɪt əˌpruːvəl/
Definitions
- (n.) The formal authorization by a lender or creditor to extend credit to a borrower after evaluating their creditworthiness.
The bank's credit approval process considers the borrower's income and credit history.
Forms
- credit approval
- credit approvals
Related terms
See also
Commentary
Credit approval is a critical procedural step in lending, ensuring that credit is granted based on assessment criteria to mitigate default risk.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.