401K Loan401K Loan
AmortizationAmortization
Auto LoanAuto Loan
Auto Title LoanAuto Title Loan
Balloon PaymentBalloon Payment
Bankruptcy DischargeBankruptcy Discharge
Car NoteCar Note
Cash-Out RefinanceCash-Out Refinance
ChargebackChargeback
CollateralCollateral
Consolidation LoanConsolidation Loan
Consumer DebtConsumer Debt
Credit Builder LoanCredit Builder Loan
Credit CardCredit Card
Credit LineCredit Line
Debt ConsolidationDebt Consolidation
Debt Forgiveness ProgramDebt Forgiveness Program
Debt Payoff PlanDebt Payoff Plan
Debt SnowballDebt Snowball
Default RateDefault Rate
DelinquencyDelinquency
Family Federal Education Loan Program (FFEL)Family Federal Education Loan Program (FFEL)
Fixed-Payment Repayment PlansFixed-Payment Repayment Plans
ForbearanceForbearance
GuarantorGuarantor
Hard Money LoanHard Money Loan
Income-Driven Repayment (IDR) ForgivenessIncome-Driven Repayment (IDR) Forgiveness
Income-Driven Repayment (IDR) PlansIncome-Driven Repayment (IDR) Plans
Installment LoanInstallment Loan
Interest RateInterest Rate
LienLien
Loan TermLoan Term
Long-Term DebtLong-Term Debt
Margin LoanMargin Loan
Medical DebtMedical Debt
Payday LoanPayday Loan
Peer-to-Peer LendingPeer-to-Peer Lending
Personal LoanPersonal Loan
Pre-ApprovalPre-Approval
Price-to-Earnings Ratio (P/E Ratio)Price-to-Earnings Ratio (P/E Ratio)
PrincipalPrincipal
Private Student Loan RefinancingPrivate Student Loan Refinancing
Public Service Loan Forgiveness (PSLF)Public Service Loan Forgiveness (PSLF)
Refinancing FeeRefinancing Fee
Revolving CreditRevolving Credit
Secured DebtSecured Debt
Secured LoanSecured Loan
Small Business LoanSmall Business Loan
Student LoanStudent Loan
Student Loan ConsolidationStudent Loan Consolidation
Student Loan Discharge ProgramStudent Loan Discharge Program
Student Loan ForgivenessStudent Loan Forgiveness
Subordination AgreementSubordination Agreement
Teacher Loan ForgivenessTeacher Loan Forgiveness
Underwriting FeeUnderwriting Fee
Unsecured LoanUnsecured Loan
Variable Interest RateVariable Interest Rate
Entrepreneurial Finances
Healthcare
Financial Coaching & Mindset
Credit & Creditworthiness
Government Benefits & Programs
Banking & Savings
Real Estate & Homeownership
Insurance & Financial Protection
Taxes
Debt & Loans
Budgeting & Spending
Employment & Income
Legal & Estate Planning
Investments & Retirement
Product1:1 CoachingOur Coaches
For Partners
Resources
Start Here
Product1:1 CoachingOur CoachesOur Story
For Partners
Resources
Start Here

Default Rate

Definition

The percentage of borrowers who fail to repay their loans, indicating the risk level associated with a loan portfolio.

What to consider

  • Keep track of default rates to understand overall credit risk.
  • Consider how a higher default rate might impact borrowing costs.
  • Review trends to make smarter credit decisions.

Real world scenarios

  • While reviewing loan performance, the bank noticed an increase in the default rate among borrowers with poor credit histories.

Related terms

Auto Loan
Consolidation Loan
Refinancing Fee
Lien
Family Federal Education Loan Program (FFEL)

Related Playbooks

Get instant access to all our expert playbooks and 1-1 financial coaching when you join the Bolder Money community. Learn more here.

Debt & Loans
Got Any Questions?

Talk to a Financial Coach

Book a free consultation with one of our coaches.
Book a Free Call
coaches@boldermoney.com
Linkedin IconInstagram IconTwitter IconFacebook Icon
NEW
Mortgage Payment CalculatorRetirement Planning Calculator
No BS. Just good emails.
Thank you! You are now subscribed!
Oops! Something went wrong while submitting the form.
© 2025, Bolder Money
Terms & Conditions
Privacy Policy