Credit Reference

A credit reference is a statement or document provided by a bank, credit bureau, or lender that offers information about an individual’s or business’s credit history and creditworthiness. Credit references are used by lenders and financial institutions to evaluate an applicant’s ability to repay loans or lines of credit. A credit reference might include details such as payment history, outstanding debt, and any defaults.

Example

When applying for a mortgage, the bank may request a credit reference from a credit bureau to assess the applicant’s creditworthiness based on their credit history.