Which term describes the ability to repay debt?
A. capacity
B. creditworthiness
C. capability

1 Answer

  • The term creditworthiness describes the ability to repay debt.

    What is Creditworthiness?

    Creditworthiness is how a lender or borrower decides whether you will default on your financial commitments or if you are worthy of receiving additional credit.

    Creditors check your reputation and dependability before approving additional credit for you.

    Several criteria are used before giving out money such as:

    • Your payback history
    • Credit score, etc

    Learn more about creditworthiness here:


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