C
Credit
Credit Impaired
A status indicating that a consumer has a negative credit record due to defaults, judgments, or being under debt review. Being credit impaired makes it difficult to obtain new credit, as lenders view you as a higher-risk borrower. The term is used in South African credit law as a formal classification.
Usage Examples
"After missing three consecutive loan payments, he was classified as credit impaired on his credit report."
"Some lenders specialise in offering loans to credit-impaired consumers, but at significantly higher interest rates."
"You can work toward removing your credit-impaired status by settling outstanding debts and maintaining consistent payments."