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Credit Risk

Credit risk is the potential for a borrower to default on their loan, which could result in a financial loss for the lender. Lenders assess credit risk when deciding whether to provide a loan, and often require collateral or a credit score to mitigate this risk. Continue Reading Below

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Encyclopedia Articles

Discover the definition of financial terms related to credit risk.

Credit Card Additional Cardholder: Understanding the Process, Risks, and Alternatives Thumbnail

Credit Card Additional Cardholder: Understanding the Process, Risks, and Alternatives

Alessandra Nicole

Roll Rates: Definition, Calculation, and Real-Life Examples Thumbnail

Roll Rates: Definition, Calculation, and Real-Life Examples

Silas Bamigbola

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Learn About Credit Risk

Thumbnail for Blog Article: How to Get a Cosigner for a Car Loan (and When It Makes Sense)

How to Get a Cosigner for a Car Loan (and When It Makes Sense)

Andrew Latham

Thumbnail for Blog Article: What Is The Max Credit Score You Can Achieve?

What Is The Max Credit Score You Can Achieve?

Benjamin Locke

Thumbnail for Blog Article: How Much Does a Debt Settlement Lawyer Cost?

How Much Does a Debt Settlement Lawyer Cost?

Lacey Stark

Thumbnail for Blog Article: How To Rent a Home With Bad Credit Score?

How To Rent a Home With Bad Credit Score?

Ossiana Tepfenhart

Thumbnail for Blog Article: A Personal Loan With A Cosigner? It Can Lower Your Rates and More

A Personal Loan With A Cosigner? It Can Lower Your Rates and More

Andrew Latham

Thumbnail for Blog Article: Subprime Credit Returns to Pre-Pandemic Levels: More Than One in Four Americans Is Now Non-Prime

Subprime Credit Returns to Pre-Pandemic Levels: More Than One in Four Americans Is Now Non-Prime

Andrew Latham

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About Credit Risk

Credit risk is the potential for a borrower to default on their loan, which could result in a financial loss for the lender. Lenders assess credit risk when deciding whether to provide a loan, and often require collateral or a credit score to mitigate this risk.