The "Default Rate" refers to the percentage of borrowers who fail to make required payments on their loans or credit obligations. This rate is an important indicator of credit risk and financial health for lenders, as it helps them assess the likelihood of losing money on loans. A higher default rate suggests that more borrowers are struggling to meet their financial commitments. Lenders, such as banks and credit unions, closely monitor default rates to adjust their lending practices and interest rates. Factors influencing the default rate include economic conditions, borrower creditworthiness, and the type of loan, such as mortgages or credit cards.