why should credit needs of a borrower be assessed accurately

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Credit Creditworthiness is depicted as a credit score. A high credit score provides high creditworthiness. In addition, creditworthiness considers other factors such as age, income, financial obligations, employment status, total debt owed, types of accounts, length of payment history and the ability to repay debt. It determines the interest rate, fees and terms and conditions of a credit card or loan. It also affects employment eligibility, insurance premiums, business funding and professional certifications or licenses.

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worthiness is a valuation performed by lenders that determines the possibility a borrower may default on his debt obligations. It considers factors, such as repayment history and credit score. Lending institutions also consider the amount of available assets and the amount of liabilities to determine the probability of a customer's default.

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