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Loan Glossary

Credit Rating:

Borrowers are rated by lenders according to the borrower's credit-worthiness or risk profile. Credit ratings are expressed as letter grades such as A-, B, or C+. These ratings are based on various factors such as a borrowers payment history, foreclosures, bankruptcies and charge-offs. There is no exact science to rating a borrowers credit, and different lenders may assign different grades to the same borrower.