WordValecredit rating
an assessment of a borrower's ability to repay debt
In more detail
a score or evaluation that shows how likely a person or company is to pay back borrowed money on time, based on their past financial behavior
Examples
- A good credit rating makes it easier to get a loan from a bank.
- The company's credit rating dropped after it failed to pay its bills on time.
How to use credit rating
A credit rating is a formal evaluation used by banks, lenders, and financial institutions to assess borrowing risk. It reflects a person's or organization's history of repaying debts and is crucial for obtaining loans, mortgages, or favorable interest rates. The term is used in both personal finance and corporate contexts.
Common phrases
- excellent credit rating
- poor credit rating
- check someone's credit rating
- improve your credit rating
- credit rating agency
- credit rating falls
Synonyms
credit score · creditworthiness · credit assessment · financial rating
Word family
credit-rated (adjective)
A common mistake
Learners sometimes use 'credit rating' and 'credit score' interchangeably, but 'credit score' is typically a numerical value (like 750) while 'credit rating' refers to the broader assessment or classification (like 'excellent' or 'poor').
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