Credit Verification
/ˈkrɛdɪt ˌvɛrɪfɪˈkeɪʃən/
Definitions
- (n.) The legal process of confirming a party's creditworthiness and financial reliability before extending credit or entering into a financial agreement.
The lender performed credit verification to ensure the borrower's eligibility for the loan.
Forms
- credit verification
Related terms
See also
Commentary
Credit verification is a crucial step to mitigate risk in credit transactions and is often governed by specific regulatory requirements.
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.