Credit Assessment
/ˈkrɛdɪt əˈsɛsmənt/
Definitions
- (n.) The process by which a lender evaluates the creditworthiness of a borrower to decide whether to extend credit and on what terms.
The bank performed a thorough credit assessment before approving the loan.
Forms
- credit assessment
Related terms
See also
Commentary
Credit assessment is critical in financial and legal contexts to mitigate risks in lending and contractual obligations.
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.