Creditworthy: meaning, definitions and examples

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creditworthy

[ˈkrɛdɪtˌwɜrði ]

Definition

^{Context #1 | Adjective}

financial sector

Deserving of receiving credit, typically used to describe an individual or business entity that is considered reliable and likely to repay borrowed money.

Synonyms

dependable, reliable, solvent, trustworthy.

Which Synonym Should You Choose?

Word	Description / Examples
creditworthy	Used to describe an individual or entity that is deemed capable of paying back a loan or debt based on their financial history. The bank considers him creditworthy for the mortgage. After reviewing her credit score, she was deemed creditworthy.
trustworthy	Used to describe someone who is honest and can be trusted to do or say the right thing. As a trustworthy person, he was given the keys to the building. Her trustworthy nature made her a favorite among her peers.
reliable	Similar to dependable, this word is often used to describe someone or something consistently good in quality or performance, and able to be trusted. He's a reliable friend who always supports me. The data from this study is considered reliable.
dependable	Used to describe a person or thing that can be relied on to do what is expected without failure. She is a dependable employee who never misses a deadline. The car has been very dependable over the years.
solvent	Mainly used in financial contexts, referring to an individual or company that has enough resources to pay all debts. The company has been solvent for many years, even during the recession. She managed her finances wisely and remained solvent.

Examples of usage

Only creditworthy applicants will be approved for a loan.
The bank evaluates the creditworthiness of each borrower before granting a mortgage.
She proved her creditworthiness by maintaining a good credit score over the years.

Interesting Facts

Etymology

The term combines 'credit', from the Latin 'creditum', meaning 'loan or trust', with 'worthy', meaning deserving.
It first surfaced in financial texts in the early 20th century as lending practices became more structured.
Creditworthiness assessments began in the United States as a way to evaluate borrowers more systematically.

Finance

Lenders assess creditworthiness through credit scores, which reflect a person's financial history and behavior.
A creditworthy individual typically benefits from lower interest rates on loans, saving them money over time.
Business and personal creditworthiness is increasingly gauged through reports from agencies like Experian and TransUnion.

Psychology

People often relate trustworthiness with positive past behaviors, impacting how they are viewed in financial contexts.
The principle of reciprocity suggests that being reliable in one area (like loans) can encourage others to be trustworthy.
Credit assessments can influence self-esteem, as individuals may feel more valued when they are recognized as creditworthy.

Cultural Impact

In various cultures, the concept of creditworthiness is tied closely to community reputation and social obligations.
Cultural differences can alter the perception of what it means to be creditworthy, especially in informal lending scenarios.
In some societies, family ties and relationships enhance creditworthiness more than formal credit scoring systems.

Legal Aspects

Federal regulations in the U.S. govern how lenders must disclose criteria used to determine creditworthiness.
Laws like the Equal Credit Opportunity Act aim to ensure fair assessment of creditworthiness across all demographics.
Creditworthiness can sometimes lead to discrimination if certain groups are unfairly labeled as non-creditworthy due to systemic biases.

Translations

Translations of the word "creditworthy" in other languages:

🇵🇹 solvente

🇮🇳 साख्य

🇩🇪 kreditwürdig

🇮🇩 layak kredit

🇺🇦 кредитоспроможний

🇵🇱 wiarygodny

🇯🇵 信用に値する

🇫🇷 solvable

🇪🇸 solvente

🇹🇷 kredi değerliliği olan

🇰🇷 신용할 만한

🇸🇦 جدير بالائتمان

🇨🇿 schopný splácet

🇸🇰 úveruschopný

🇨🇳 有信用的

🇸🇮 kreditno sposoben

🇮🇸 lánshæfur

🇰🇿 несиеге қабілетті

🇬🇪 საკრედიტოუნარიანი

🇦🇿 kreditə yararlı

🇲🇽 solvente