Creditworthiness

A creditor's measure of a consumer's past and future ability and willingness to repay debts.  In essence, a creditor's creditworthiness is a measure of his or her ability to successfully manage his or her finances and make timely payments on debt as demonstrated over a historical period. There are two types of creditworthiness : personal and material. Personal creditworthiness looks at the reliability, professional and technical qualifications of the borrower, or his business acumen. Material creditworthiness deals with financial criteria, such as past debt repayment, earning capacity, and debt to income ratio.

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