What does "creditworthiness" indicate about a borrower?

Creditworthiness indicates the likelihood that a borrower will be able to repay their debts. It is essentially an assessment of the borrower's financial health, based on various factors including credit history, income, outstanding debts, and overall financial behavior. Lenders use this assessment to evaluate the risk associated with lending money to the borrower. A high creditworthiness suggests that the borrower is reliable and has a strong chance of repaying the loan, which can lead to better loan terms, including lower interest rates.

In the context of the other choices, while determining the loan amount available and assessing collateral are important considerations for lenders, they are not direct reflections of creditworthiness itself. Similarly, current market interest rates can impact loan costs, but they do not provide insight into an individual borrower's ability or intention to repay. Thus, the focus on repayment likelihood captures the essence of what creditworthiness truly measures.