credit-verification

Vocabulary Word

Definition

'Credit verification' is a process used by banks or lenders before giving you credit or a loan. They check how you've handled borrowing money in the past. It's like a 'character check' for your financial responsibility.

Examples in Different Contexts

In auto financing, 'credit-verification' is performed to evaluate whether a customer qualifies for a car loan based on their creditworthiness. An auto finance manager might state, 'Credit-verification helps us offer competitive rates to customers with good credit histories, while managing our risk exposure.'

Practice Scenarios

Marketing

Scenario:

We've landed a potentially huge client, but we need to ensure the stability of this partnership before moving forward.

Response:

I second that, running a credit verification check can provide insights into their financial stability.

Business

Scenario:

I'm concerned about the financial records of our potential partner. Perhaps we need to consider a third-party assessment.

Response:

You're right, we should conduct a credit verification check before partnering with any company.