Impaired Credit

The term “impaired credit” denotes a decline in the creditworthiness of a person or other entity. Impaired credit may result when a debt collection case against a person is entered into a debt collection register. Negative entries in credit reports from credit bureaus or poor ratings from rating agencies may also result in impaired credit.

When the creditworthiness of a person or business is impaired, that person or business may experience more difficulty in securing loans or making purchases on credit.

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