CREDIT INVESTIGATION AND CREDITWORTHINESS Flashcards
1
Q
The systematic process of evaluating a potential borrower’s financial background, credit history, and overall ability to repay a loan.
A
CREDIT INVESTIGATION
2
Q
The assessment of how likely a borrower is to repay debt based on past behavior, current financial status, and future prospects.
A
CREDITWORTHINESS
3
Q
CREDIT INVESTIGATION PROCESS
A
- COLLECT INFORMATION
- ANALYZE DATA
- VERIFY INFORMATION
- MAKE A DECISION
- DOCUMENT FINDINGS
4
Q
COMMON PTALLS IN CREDIT INVESTIGATION
A
- INACCURATE INFORMATION
- NEGLECTING PUBLIC RECORDS
- IGNORING REFERENCES
