A banker's reference, also known as a status enquiry, is a report on the creditworthiness of an individual supplied by a bank to a third party. Such reports are often used by financial institutions or customers seeking insight into the financial reliability of individuals or entities.
A co-borrower is an additional person who is responsible for repaying a loan and is listed on the loan agreement alongside the primary borrower. Both borrowers are equally liable for the debt.
A cosigner is an individual who agrees to take on the financial obligations of a loan or debt if the primary borrower defaults. This person provides assurance to the lender of repayment.
A credit analyst is a professional responsible for evaluating the financial affairs of individuals or corporations to determine their creditworthiness. They assess the risk associated with lending and determine credit ratings.
Credit bureau scores are numerical expressions based on a statistical analysis of a person's credit files, representing the creditworthiness of that individual.
A comprehensive record of an individual's debt repayment behaviors and actions, utilized by lenders to evaluate creditworthiness.
An assessment of the creditworthiness of an individual or a firm, indicating the extent to which they can safely be granted credit. It is a crucial element in financing and investing decisions.
Credit Scoring is an objective methodology used by credit grantors to determine how much credit to grant to an applicant. Various factors like income, assets, employment history, residence stability, and past credit behavior are considered.
Credit standing refers to the reputation an individual or business earns for paying debts. It relates to the perceived reliability in fulfilling financial obligations based on past behavior.
An assessment of a person's or a business's ability to pay for goods purchased or services received. Creditworthiness is often represented by a credit rating, which provides lenders insight into the risk of extending credit to the borrower.
Government securities are debt instruments issued by a government to support government spending and obligations. These securities include Treasury bills, bonds, notes, and savings bonds, all of which are considered highly creditworthy due to the backing of the government's 'full faith and credit.'
A trade reference is a critical component for assessing the creditworthiness of a trader, typically provided by another member within the same trade, often required by suppliers before extending credit terms.
An unsecured debenture is a type of debt instrument that is not backed by any specific collateral, relying instead on the creditworthiness and reputation of the issuer.
