Finance Glossary
Creditworthiness
A lender's overall assessment of how likely a borrower is to repay their debts on time and in full. Creditworthiness takes into account credit score, credit history, income, employment status, existing debt levels, and affordability. Lenders are legally required under FCA rules to assess creditworthiness before approving a loan to ensure responsible lending.
Related terms
Credit Score
A numerical rating assigned by credit reference agencies tha…
Credit File
A detailed record held by credit reference agencies that doc…
Affordability Check
An assessment carried out by a lender to determine whether a…
Responsible Lending
The principle — and legal obligation under FCA rules — that …
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