CREDITWORTHY Meaning and
Definition
-
Creditworthy is an adjective that describes someone or something as being deemed reliable and trustworthy when it comes to extending credit or granting financial transactions. It refers to the capability or reputation of a person or entity to meet their financial obligations promptly and in full.
In the context of lending institutions, creditworthiness is an essential factor in evaluating the risk associated with providing loans or extending credit to individuals or businesses. Lenders assess an individual's creditworthiness by examining their credit history, income stability, debt-to-income ratio, and other relevant factors to determine if they are likely to repay the loan or fulfill their financial obligations as agreed.
Similarly, for businesses, creditworthiness refers to the company's financial strength, stability, and capacity to meet its payment obligations, debts, and other financial commitments. Factors such as profitability, cash flow, debt levels, and business history are considered when evaluating the creditworthiness of a company.
Being considered creditworthy implies that the individual or organization has a positive financial track record, demonstrating responsible financial management and an ability to handle credit obligations competently. A creditworthy individual or entity is more likely to be approved for loans or credit, obtain favorable interest rates and terms, and build a solid reputation in the financial sphere.
In summary, creditworthy refers to the level of trust and reliability a person or entity has when it comes to fulfilling financial obligations, making them a favorable candidate for credit or financial transactions.
Common Misspellings for CREDITWORTHY
- xreditworthy
- vreditworthy
- freditworthy
- dreditworthy
- ceeditworthy
- cdeditworthy
- cfeditworthy
- cteditworthy
- c5editworthy
- c4editworthy
- crwditworthy
- crsditworthy
- crdditworthy
- crrditworthy
- credeitworthy
- creditworthty
- crediworth
Etymology of CREDITWORTHY
The word "creditworthy" is derived from two components: "credit" and "worthy".
The term "credit" originates from the Latin word "creditum", which means "a loan" or "something entrusted". It is derived from the Latin verb "credere", meaning "to believe" or "to trust". In the context of finance, "credit" refers to the ability to obtain goods or services before actual payment, based on the trust that payment will be made at a later time.
The word "worthy" comes from the Old English word "wurðig", which means "having worth" or "deserving". It is related to the Middle English word "worthi", which further expanded the meaning of "worthy" to include "having merit" or "having value".
Similar spelling words for CREDITWORTHY
- credit crunch,
- credit side,
- creditor,
- credit union,
- creditable,
- credit line,
- creditably,
- Crediting,
- credit hour,
- credit card,
- credit order,
- credit entry,
- credit system.
Infographic
Add the infographic to your website:
