Question

Questions 9.
Credit Rating is called –
(a) Personal Loan
(b) Credit Test
(c) Both (a) and (b)
(d) None of them

Answer 1

Credit Rating is called –

Credit test

Answer 2

Credit Rating is called (b) Credit Test.

Credit rating is a rating given to a person or entity such as a company, evaluating the degree of risk involved in giving it a loan. The rating shows the ability of the person or entity to repay the loan at a specified time, at a specified rate of interest. A lender takes into account the credit rating of a client before giving loan.