Credit risk assessment meaning

How does credit assessment work?
A credit score is based on your credit history, which includes information like the number accounts, total levels of debt, repayment history, and other factors.
Lenders use credit scores to evaluate your credit worthiness, or the likelihood that you will repay loans in a timely manner..
What is a credit risk assessment?
Credit risk analysis determines a borrower's ability to meet their debt obligations and the lender's aim when advancing credit.
Expected losses, risk-adjusted return, and other considerations all serve to inform the outcome of the credit risk analysis process..
What is the meaning of credit assessment?
A credit assessment, also known as a credit check, is used to assess the solvency of companies and individuals.
Usually, consumers are subject to checks when applying for a loan or to pay for purchases in instalments..

How does credit assessment work?