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

Tech

Scenario:

We are having problems predicting loan defaults. Perhaps we should look into enhancing our data analysis techniques.

Response:

Can we integrate advanced analytics into our credit management system to improve the accuracy of the risk evaluation?

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.