Definition of «new credit»

The term "new credit" refers to a person's or entity's recent credit history, which includes any new loans, lines of credit, or other forms of debt that have been taken on recently. This information is typically used by lenders and creditors to assess an individual's or businesses ability to repay their debts in a timely manner. A person with "new credit" may be considered a higher risk for defaulting on payments, as they do not have a long established history of making regular payments. However, it also means that the person has recently shown an ability and willingness to take on new debt obligations.

Sentences with «new credit»

  • You are also in the highest risk category if you try to apply for new credit card accounts. (think-creditcards.com)
  • Another trick, if you know you'll be needing a loan in the near future, is to avoid applying for new credit cards in the lead up to applying for the loan. (mybanktracker.com)
  • This category reflects factors such as the number of new credit accounts on your credit report. (epic.org)
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