ability to repay

USAGE SUMMARY

The phrase "ability to repay" is correct and usable in written English.
It can be used in contexts related to finance, loans, or credit assessments when discussing someone's capacity to pay back borrowed money. Example: "Before approving the loan, the bank assessed the applicant's ability to repay based on their income and credit history."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

58 human-written examples

"And they had a limited ability to repay.

The New Yorker

Banks consider a borrower's ability to repay mortgages.

The Economist

Might that affect their ability to repay the bank?

The Economist

Capital One also considers the applicant's ability to repay.

The New York Times

For now, the tepid recovery is still hampering people's ability to repay their debts.

The New York Times

That raises serious questions about their ability to repay those obligations over time.

The New York Times

"This information will help verify your identity and ability to repay".

The New York Times

The banks will have to assess the consumer's ability to repay before making a loan.

The New York Times

Addressing borrowers' ability to repay loans has been the focus, Mr. DeMarco said.

The New York Times

The goal is to encourage banks to thoroughly vet a borrower's ability to repay the loan.

The New York Times

"We're getting the borrower into a mortgage they have an ability to repay".

The New York Times

Expert writing Tips

Best practice

When discussing loan applications or financial assessments, clearly state the criteria used to determine the "ability to repay", such as income, credit history, and existing debt.

Common error

Avoid making unqualified claims about someone's "ability to repay" without sufficient evidence or a thorough financial review. Base your assessment on concrete data and established lending practices.

Linguistic Context

The phrase "ability to repay" functions as a noun phrase, typically serving as the object of a verb or preposition. As Ludwig AI confirms, it's used in financial contexts to describe the capacity to pay back borrowed money.

Expression frequency: Very common

Frequent in

News & Media

69%

Science

17%

Formal & Business

14%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, the phrase "ability to repay" is a grammatically sound and frequently used term in finance, primarily appearing in news and media, scientific, and formal business contexts. As Ludwig AI reports, it pertains to the evaluation of financial capacity, and its use is crucial for responsible lending and debt management. Related phrases like "capacity for repayment" and "financial solvency" offer similar meanings, while best practices emphasize the need for data-driven assessments to avoid overstating someone's repayment potential.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

capacity for repayment

Focuses on the inherent capacity rather than the act itself.

capability to pay back

Replaces "repay" with the more informal "pay back".

financial solvency

Highlights the overall financial health and stability.

means of reimbursement

Emphasizes the resources available for repayment.

resources for repayment

Directly refers to the available funds or assets.

wherewithal to settle debts

Uses a more formal and comprehensive expression.

potential for debt settlement

Shifts the focus to the future possibility of repayment.

fiscal responsibility

Broadens the scope to include overall financial management.

creditworthiness

Focuses on the borrower's reliability and trustworthiness.

repayment reliability

Highlights the dependability and consistency of repayment.

FAQs

How do lenders assess the "ability to repay" a loan?

Lenders typically evaluate the applicant's income, credit history, existing debts, and assets to determine their "ability to repay" a loan.

What factors can affect a borrower's "ability to repay"?

Changes in income, unexpected expenses, or increases in interest rates can all impact a borrower's "ability to repay" their debts.

What are some alternatives to the phrase "ability to repay"?

You can use alternatives such as "capacity for repayment", "financial solvency", or "creditworthiness" depending on the context.

Why is it important for lenders to verify a borrower's "ability to repay"?

Verifying the borrower's "ability to repay" helps lenders minimize the risk of default and protects borrowers from taking on unsustainable debt.