Credit Evaluation
/ˈkrɛdɪt ˌɛvəˈluːˌeɪʃən/
Definitions
- (n.) The process of assessing an individual's or entity's creditworthiness to determine the risk of lending or extending credit.
The lender performed a thorough credit evaluation before approving the loan.
- (n.) An analysis used by financial institutions to decide the terms or eligibility for credit.
Credit evaluation is essential to minimize financial risk in banking agreements.
Forms
- credit evaluation
- credit evaluations
Related terms
See also
Commentary
In legal drafting, clearly defining the scope of credit evaluation can prevent ambiguity in contracts related to lending and credit 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.