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What is creditworthiness?

Creditworthiness is an assessment of the financial health and ability of a person or company to meet their financial obligations and repay loans. It is often used by lenders to determine a person’s eligibility for a loan and on what terms. Creditworthiness is determined by several factors, including a person or company’s credit history, income, expenses, debts, and assets. A higher credit rating indicates that the person or business carries less risk for the lender and can lead to more favourable loan terms.

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