Which factor primarily influences an individual's creditworthiness?

The primary factor that influences an individual's creditworthiness is the borrower's credit history and score. Creditworthiness refers to the likelihood that a borrower will repay a loan, and this assessment is largely based on the history of the borrower’s borrowing and repayment habits.

A credit history contains detailed records of a person's borrowing activity, including the amount of credit used, payment timeliness, and any defaults or bankruptcies. A credit score, which is derived from the information in the credit history, is a numerical representation of a borrower's creditworthiness. It is calculated using various factors, including payment history, credit utilization, length of credit history, types of credit used, and recent credit inquiries.

A solid credit history and a high credit score indicate to lenders that the borrower is responsible and likely to pay back borrowed funds. This is why these elements are essential when evaluating creditworthiness, making this choice the most accurate among the available options.

Other factors may contribute to the overall financial assessment, but they do not directly influence creditworthiness to the same extent as credit history and score. For instance, while the number of credit cards can reflect credit behavior, it is the successful management of those accounts that matters more. Similarly, income level can affect affordability and loan eligibility