Various factors are used to access creditworthiness, such as income, the number of assets to your name and how much debt you have accumulated. 

If you have a low income level, you simply may not be deemed worthy by some institutions. If you have already borrowed too much money and are applying for additional credit, then the chances of approval are low. In order to better your approval chances, you could pay most of your debts off, meaning that you will have more disposable income to dedicate towards paying a new debt off. 

As a borrower, you don’t want to take debts on which you can’t afford. This is one if the key reasons for needing to take care of your creditworthiness. If you are paying too many debts off, then your credit utilisation is too high..  

It helps to avoid reckless lending. For lenders, in addition to affordability tests, this metric can be highly useful for guiding decisions. 

If you have no credit to your name, then there is no way for lenders to know how reliable you are in terms of loan repayment. Knowing how to develop good credit can put you in a favourable position. 

Creditworthiness is an indicator of your repayment track record. It’s also an indicator of whether you’re borrowing beyond your means or not. It’s a good way of showing if you are defaulting on any of your loans. 

Knowing how this works is essential for finding ways to improve your credit standing.

https://entireloans.com/wp-content/uploads/2018/11/Entire_Loans_Importance_of_creditworthiness.jpghttps://entireloans.com/wp-content/uploads/2018/11/Entire_Loans_Importance_of_creditworthiness-150x150.jpgAdminFinanceCredit-sa,creditworthiness,creditworthiness-important-saVarious factors are used to access creditworthiness, such as income, the number of assets to your name and how much debt you have accumulated.  If you have a low income level, you simply may not be deemed worthy by some institutions. If you have already borrowed too much money and are applying for additional credit,...Compare Local Financial Products in South Africa