Creditworthiness

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Creditworthiness

Eligibility of an individual or firm to borrow money.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Creditworthiness

The ability to borrow money. The better one's creditworthiness, the more likely it is that a bank or other financial institution will extend credit. One establishes creditworthiness by repaying loans and other bills on time, spending prudently, and generally showing that one can behave in a financially responsible way. Individual creditworthiness is measured by the FICO score while a company's or other organization's creditworthiness usually is measured by its credit rating.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

creditworthiness

see CREDIT CONTROL.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
If the lender charges a low interest rate on mortgages to make them affordable to the creditworthy applicant, it will lose money because the other applicant will also get the same mortgage and potentially default.
And the large merged banks are lending less even to creditworthy borrowers, due to regulatory limitations on the loans that can be allocated to a single borrower.
The Peracchi decision now allows certain creditworthy S corporation shareholders to get additional basis in their S stock simply by issuing an unsecured promissory note to the corporation.
Specifically, (1) the debtor (Peracchi) was creditworthy and able to pay, (2) the note bore a market rate of interest, (3) the note had a fixed term, (4) the IRS did not argue that the note's value was less than its face amount, and (5) the note was fully transferable and enforceable by third parties, such as hostile creditors.
Privlo said it has expanded into Washington with non-QM mortgages to creditworthy borrowers getting sidelined by traditional banks because of complex incomes.
8, Fannie Mae and Freddie Mac made it official--they were once again in the business of buying low-down-payment loans from creditworthy borrowers.
THIS year will see creditworthy homebuyers offered the best chance since the start of the credit crunch to buy a new home without a hefty deposit.
"This is a terrific opportunity to acquire a fabulously located retail condominium, fully leased to a creditworthy tenant, with a singular cacht because of the neighborhood, "said Anton.
Bernanke cited a statement released by several federal agencies last November where it was emphasized that, "while rectifying past shortcomings in underwriting standards and other aspects of risk management, banks can and should continue to provide loans to creditworthy customers."
The most recent change of the rate, which is charged on loans of one year or longer to the lender's most creditworthy corporate borrowers, came on April 10 when it was lifted 0.05 percentage point to 2.25 percent.