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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
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Encyclopedia Articles

Discover the definition of financial terms related to credit risk.

Structured Investment Products (SIPs): Understanding, Examples, and Risks Thumbnail

Structured Investment Products (SIPs): Understanding, Examples, and Risks

Silas Bamigbola

Credit Control: Strategies, Types, and Real-World Scenarios Thumbnail

Credit Control: Strategies, Types, and Real-World Scenarios

SuperMoney Team

Jarrow Turnbull Model: Key Component and Application Thumbnail

Jarrow Turnbull Model: Key Component and Application

SuperMoney Team

Excess Loan: Causes and Impact Thumbnail

Excess Loan: Causes and Impact

SuperMoney Team

Judgmental Credit Analysis: What it is and How it Works Thumbnail

Judgmental Credit Analysis: What it is and How it Works

SuperMoney Team

Reference Asset: Examples, and Applications Thumbnail

Reference Asset: Examples, and Applications

SuperMoney Team

Credit Netting: How It Works, Types, and Examples Thumbnail

Credit Netting: How It Works, Types, and Examples

SuperMoney Team

Intramarket Sector Spreads: Definition, Examples, and Application Thumbnail

Intramarket Sector Spreads: Definition, Examples, and Application

SuperMoney Team

Chastity Bonds: Benefits and Risks Thumbnail

Chastity Bonds: Benefits and Risks

SuperMoney Team

Del Credere Agencies: Understanding, Examples, and Considerations Thumbnail

Del Credere Agencies: Understanding, Examples, and Considerations

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.