credit-management

Vocabulary Word

Definition

'Credit Management' isn't about making friends pay money back, but close! Banks and businesses use this to decide who should get loans, set limits and ensure they're paid back.

Examples in Different Contexts

In consumer credit, 'credit-management' refers to the practices and strategies individuals use to maintain or improve their credit standing. A credit counselor might advise, 'Effective credit-management includes paying bills on time, keeping balances low, and regularly checking your credit report for inaccuracies.'

Practice Scenarios

Academics

Scenario:

The new research paper on credit risk management provides a fascinating insight into advanced models for predicting defaults.

Response:

It sounds like an opportunity to delve deeper into the subject of credit management. Let's develop a new course module around it.

Banking

Scenario:

Our bad debt numbers have risen dramatically. We may have to reconsider our loan granting criteria.

Response:

I concur. Good credit management calls for stricter loan policies and better risk assessment techniques.