Credit Standards

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Credit Standards

The guidelines a company follows to determine whether a credit applicant is creditworthy.

Credit Standards

The set of standards that a company or bank uses to determine whether to extend a loan or line of credit to an applicant. Credit standards may include having a certain FICO score, recent good credit history, and a certain income.
References in periodicals archive ?
The Central Bank of Uzbekistan has announced that Credit Standard Bank's licence has been withdrawn.
An emission credit standard can be selected for an engine as long as the emissions are below a specified ceiling.
This comes after the Pension Credit standard minimum guarantee increased this April by the biggest amount since it was introduced, bringing it to pounds 130 a week for single pensioners or pounds 198.
Survey respondents expect further easing in credit standard, though to a lesser extent than recorded in the March quarter.
It said, 'Despite ongoing demand growth, survey results suggest a reduced willingness to extend business loans among financial institutions, with changes in credit standards suggesting a higher degree of risk aversion.
Lenders continue to report easing credit standards over the prior three months across all loan types.
The quarterly credit sentiment survey of lenders by the UAE Central Bank in the fourth quarter of 2014 had hinted at a potential slow down in credit demand and tightening of credit standards at the aggregate level.
The survey indicated a marginal tightening in credit standards vis-a-vis maximum loan-to value (LTV).
The third-quarter survey found most lenders reported no major changes in their credit standards for the prior three months.
Tightening of credit standards on loans to enterprises stabilised in the third quarter, while demand for loans by households and enterprises was lower compared with the previous quarter, the Central Bank of Cyprus said in its October Banking Lending Survey (BLS).
But a number of the small businesses in question are not able to meet the credit standards required by most traditional lenders and their government agency regulators.
There may be times when loosening the credit standards makes good sense--as a courtesy to an especially good customer and with the CFO's OK.