Credit Worthiness Definition

Credit worthiness is an abstract concept that encapsulates how likely a person is to pay back a loan. Potential creditors will use some objective method to assess a potential debtor’s credit worthiness, and then use that assessment to determine how much money it would be wise to loan out. In today’s world, credit worthiness is usually expressed as a number—such as a credit score—so that the bank can run the number through a formula which either has a positive result (OK, you can buy that new car) or a negative result (Nope, keep driving the clunker).