Credit assessment

Credit assessment is the process lenders use to evaluate a person’s or organization’s ability to repay a loan or credit. It involves reviewing financial information, such as income, expenses, credit history, and existing debt, to determine the level of risk involved in lending. The goal is to ensure that the borrower is likely to make timely payments, allowing lenders to make informed decisions about offering credit and setting appropriate terms. This process helps both parties, providing assurance for lenders and clear expectations for borrowers.