Answer:
a composition of creditors
Step-by-step explanation:
A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.
Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.
A credit score can be defined as a numerical expression between 300 - 850 that represents an individual's financial history and credit worthiness. Therefore, a credit score determines the ability of a borrower to obtain a loan from a lender.
This ultimately implies that, the higher your credit score, the higher and better it is to obtain a loan from a potential lender. A credit score ranging from 670 to 739 is considered to be a good credit score while a credit score of 740 to 799 is better and a credit score of 800 to 850 is considered to be excellent.
Hence, lenders look at the credit score of a loan applicant so as to ensure that he or she is financially responsible and would be able to repay the loan at the agreed upon date.
A composition of creditors can be defined as a type of arrangement in which an individual owing (debtor) several people money gives each of the creditors part of the total amount of money being owed. Also, for this arrangement to be valid, it must be agreed to by all creditors.