by crispin0 | Jun 8, 2025 | Terminologies
A credit check is the process of reviewing the borrower’s credit history to assess their creditworthiness. Loan apps often perform a soft or hard credit check to decide whether to approve the loan and set terms.
by crispin0 | Jun 7, 2025 | Terminologies
A credit score is a numerical representation of a borrower’s creditworthiness, based on their credit history. It is used by lenders to evaluate the likelihood that the borrower will repay the loan. Scores range from poor to excellent, with higher scores indicating...
by crispin0 | Jun 6, 2025 | Terminologies
Credit utilization refers to the percentage of available credit a borrower is using. A high credit utilization ratio can negatively impact the borrower’s credit score and ability to secure loans.
by crispin0 | Jun 5, 2025 | Terminologies
Debt collection is the process of recovering overdue loans or debts. Online lending apps may use in-house teams or third-party agencies to collect on defaulted loans.
by crispin0 | Jun 4, 2025 | Terminologies
Debt recovery is the process of collecting owed funds from a borrower who has defaulted on their loan. It can involve negotiating a payment plan or pursuing legal action.
