Creditworthiness is the basis of a person or company to reliably repay money back. It looks at the borrower’s repayment history to help lenders decide if borrowers are suitable to receive the credit they are asking for. Establishing strong creditworthiness (and having a high credit score) helps when you need to borrow funds to pay or finance large purchases that you are unable to pay out rightly with cash, such as a college education, car, or home.
Lenders may assess your creditworthiness by verifying your income and debt, as well as any additional assets. These are used to calculate your debt-to-income ratio (DTI), which gives lenders an idea of how much loan you can qualify for and pay back.