basis of credit

USAGE SUMMARY

"basis of credit" is a correct and usable phrase in English.
It typically refers to the criteria that are taken into consideration when one applies for a loan or other type of credit. You can use it in any situation when discussing the process and considerations involved in obtaining credit. For example: "The bank required me to provide proof of income and a list of assets as the basis of credit for my application."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

6 human-written examples

What to do? Selingo envisions a fundamental shift in how degrees are awarded — not on the basis of credit hours completed but on competency demonstrated.

The New York Times - Books

Sophisticated banks can use their own internal risk-management systems; smaller banks can use a "standardised" method, which relies on calculating risks on the basis of credit ratings.

The Economist

In recent weeks we have highlighted the questionable legal basis of credit card penalties and unauthorised overdraft charges, and many readers have managed to obtain refunds after following the advice of our legal correspondent, Richard Colbey.

The Guardian - Money

But the real answer may be for Congress to say that except in clearly defined circumstances — positions that require security clearance, for instance — no worker should be turned away solely on the basis of credit history.

The New York Times

The Bank has been severely criticised in some quarters because it failed to take advantage of the influx of gold early in the year to reduce its discount rate and broaden the basis of credit.

The Economist

Sales through the wholesale channel are seldom done on the basis of credit.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

54 human-written examples

Because they have counted this as a cost, they say that minimum capital requirements should be calculated on the basis of credit-card assets net of expected losses.

The Economist

That's the total time available, which will be split between the community: BootStramp Camp will operate on the basis of "credits" you can earn by helping others.

TechCrunch

"We have tested credit cards, prepay credit cards, on the basis of our credit scoring and it's a product that we might come back with in the future.

TechCrunch

"Municipal bonds are bought and sold on the basis of their credit ratings," the report said.

The New York Times

Plantation owners' "best, and most liquid, asset was their Negroes, who formed the basis of their credit," he asserts.

The New York Times - Books

Expert writing Tips

Best practice

When discussing credit evaluations, be specific about which "basis of credit" you are referring to, such as financial history, asset value, or credit score.

Common error

Avoid using "basis of credit" without specifying what factors constitute that basis. For example, instead of saying "Credit was granted on the basis of credit", clarify: "Credit was granted on the basis of the applicant's credit score and employment history."

Linguistic Context

The phrase "basis of credit" functions as a noun phrase, typically serving as an object of a preposition or a subject complement. As Ludwig AI confirms, it denotes the underlying reasons or justifications for extending credit. Examples from Ludwig show it used in contexts related to loan applications, financial assessments, and regulatory frameworks.

Expression frequency: Uncommon

Frequent in

News & Media

50%

Science

33%

Formal & Business

17%

Less common in

Wiki

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "basis of credit" is grammatically correct and serves to denote the criteria used for granting credit, according to Ludwig. While not extremely common, it appears primarily in news, science, and formal business contexts. It's crucial to be specific about which factors constitute the "basis of credit" to avoid vagueness. Alternatives include "grounds for credit", "rationale for credit", and "criteria for credit", offering nuanced ways to express similar concepts. The phrase has a neutral to professional register, appearing in both news reports and academic discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

grounds for credit

Replaces "basis" with "grounds", emphasizing the justification for extending credit.

rationale for credit

Uses "rationale" to highlight the logical justification behind granting credit.

justification for credit

Similar to "rationale", but with a stronger emphasis on defending the decision to grant credit.

criteria for credit

Focuses on the specific standards used to evaluate creditworthiness.

underlying factors for credit

Emphasizes the less obvious, but still important, elements considered for credit approval.

foundation for credit

Uses "foundation" to suggest the fundamental reasons for granting credit.

reason for credit

A simpler alternative, focusing on the cause or purpose of the credit.

premise for credit

Highlights the assumptions on which the credit is granted.

principle for credit

Emphasizes the guiding rules or beliefs for extending credit.

determinants of credit

Focuses on the specific factors that influence whether credit is granted.

FAQs

How is "basis of credit" determined?

The "basis of credit" is determined by factors such as credit score, income, assets, and repayment history, which lenders use to assess creditworthiness.

What are some alternatives to "basis of credit"?

You can use alternatives like "grounds for credit", "rationale for credit", or "criteria for credit" depending on the context.

Can "basis of credit" be discriminatory?

Yes, if credit decisions are made on discriminatory factors such as race, gender, or religion, it violates equal opportunity laws.

What if my credit application was rejected, but I don't know the "basis of credit" used?

You have the right to request an explanation from the lender, detailing the specific reasons for the denial of your credit application.