ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Creditworthiness is determined by several factors including your repayment history and credit score. Some lending institutions also consider available assets and the number of liabilities you have when they determine the probability of default.

Detailed explanation-2: -A high credit rating indicates that a borrower is likely to repay the loan in its entirety without any issues, while a poor credit rating suggests that the borrower might struggle to make their payments.

Detailed explanation-3: -Creditworthiness, simply put, is how “worthy” or deserving one is of credit.

Detailed explanation-4: -Creditworthiness is an essential principle of business, signifying how deserving a customer is of getting credit. A customer is creditworthy if the company believes it can pay the debt on time. It is determined by multiple factors such as revenue, payment history, credit score, outstanding liabilities, etc.