Question

The criteria with which a lender determines the credit worthiness in order to qualify them for the loan is referred to as…?

Answer 1

The criteria that lenders employ to decide whether a potential borrower is qualified for a loan are referred to as credit criteria.

What is Credit criteria?

When evaluating the strength of a new credit application, credit criteria are taken into consideration. To determine the borrower's creditworthiness, the majority of banks employ a comparable set of standards. The legislation forbids the use of certain variables, such ethnicity or religious affiliation, in making such choice.

Explanation:

• The criteria that lenders employ to decide whether a potential borrower is qualified for a loan are referred to as credit criteria.

To know more about credit criteria visit:

https://brainly.com/question/8990608

#SPJ4