Credit reference

Credit reference

A credit reference is information, the name of an individual, or the name of an organization that can provide details about an individual's past track record with credit. Credit rating agencies provide credit references for companies while credit bureaus provide credit references for individuals.

Other letters of credit reference might be written by banks which would provide basic information about how long the applicant has held an account, what type of account it was, and whether or not there were any overdrafts or late payments noted.

How credit references are used

Credit references are used to help lenders quantify the risk of lending to a given applicant, or to determine overall creditworthiness. For example, if an applicant's credit history indicates proper, timely payments on all outstanding obligations, a lender may judge it more likely that the applicant will make timely payments on the requested loan.

See also

External links


Wikimedia Foundation. 2010.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • credit reference — UK US noun [C] ► FINANCE, BANKING a report that provides information about a person s or company s ability to pay their debts: »The bank cannot decide which rate to offer a customer until it has received an application and can seek a credit… …   Financial and business terms

  • Credit Reference — A credit reference can be a report from a credit agency for either a business or an individual. The term can also be used to mean a letter from a bank or other financial institution with whom a company has done business, confirming to third party …   Investment dictionary

  • credit reference agency — A credit reference agency is a business, which collects information on the financial standing of individuals with the specific intention of making the information available to others. A licence under the Consumer Credit Act 1974 is required if… …   Law dictionary

  • credit reference agency — UK US noun [C] UK FINANCE ► CREDIT BUREAU(Cf. ↑credit bureau) …   Financial and business terms

  • credit-reference agency — noun An organization that specializes in providing credit ratings • • • Main Entry: ↑credit …   Useful english dictionary

  • credit reference — noun a) A person or business that can be contacted to validate or vouch for the credit applicants ability to pay outstanding balances in a timely manner. b) The credit history of a person used as evidence of …   Wiktionary

  • credit-reference agency — / kredɪt ˌref(ə)rens ˌeɪdʒənsi/ noun a company used by businesses and banks to assess the creditworthiness of people …   Marketing dictionary in english

  • credit-reference agency — / kredɪt ˌrefər(ə)ns ˌeɪdʒənsi/ noun a company used by businesses and banks to assess the creditworthiness of people …   Dictionary of banking and finance

  • Credit rating — of governments around the world by Standard Poor s:   AAA …   Wikipedia

  • reference — ref‧er‧ence [ˈrefrəns] noun [countable] 1. with reference to formal used to say what you are writing or talking about, especially in business letters: • With reference to your recent advertisement, I am writing to apply for the post of sales… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”