Your credit history is the most important factor in determining your creditworthiness. Lenders will look at your credit report to see how you've managed your debt in the past. This includes information such as your payment history, credit utilization, and length of credit history.
2. Debt-to-income ratio
Your debt-to-income ratio (DTI) is another important factor in determining your creditworthiness. Lenders will compare your monthly debt payments to your gross monthly income. A high DTI can make it more difficult to qualify for a loan.
3. Income
Your income is also a factor in determining your creditworthiness. Lenders will want to see that you have a stable source of income that is sufficient to cover your debt payments.
4. Employment history
Your employment history can also affect your creditworthiness. Lenders will want to see that you have a stable job history with no gaps in employment.
5. Collateral
If you're applying for a secured loan, such as a mortgage or auto loan, you may be required to provide collateral. Collateral is an asset that you pledge as security for the loan. If you default on the loan, the lender can seize the collateral.