Credit assessment is the process used by lenders to evaluate a borrower's creditworthiness. This involves analyzing various factors, such as the borrower's credit history, income, and existing debts. By examining these elements, lenders can determine the likelihood that the borrower will repay the loan on time. A key tool in credit assessment is the credit score, which is a numerical representation of a person's creditworthiness. Higher scores indicate better credit health, making it easier for individuals to secure loans or favorable interest rates. Ultimately, credit assessment helps both lenders and borrowers make informed financial decisions.