credit-history

Vocabulary Word

Definition

'Credit history' is a record of your past borrowing and repaying actions. It includes details like if you paid on time and how much you owe. It is mainly used by lenders to determine if you're likely to repay future loans or credit.

Examples in Different Contexts

For mortgage lending, 'credit-history' plays a critical role in determining an applicant's eligibility and interest rates. A mortgage lender might say, 'A strong credit-history indicates a lower risk to lenders, potentially leading to lower interest rates on your mortgage.'

Practice Scenarios

Accounting

Scenario:

The company has expanded rapidly. We need to go through their financial records and determine creditworthiness.

Response:

I'll review the company's credit history to give us a clear picture of their financial health.

Business

Scenario:

We're considering extending our services to include financial lending, which means we'll need to pull credit reports to assess risk more accurately.

Response:

I’ll research the best ways to analyze credit histories to help us determine our lending risk.