What Lenders Look For In A Credit Report

It is important to understand what a lender looks for when they check your credit report. While credit history is very important and weighs heavily on a creditors decision to approve or deny you, it is not the only thing they look at. A lender wants to know what your income is and how much of that income is needed for bills and other expenses. This includes other credit accounts, rent or mortgages payments, and other monthly expenses that are ongoing. The amount of your income you have left after your expenses will show them whether or not you can afford to take on more credit. Then they look at your assets, if you have any. This includes any property you own, bank accounts, valuable items, etc. These can potentially be used as collateral to get a loan or line of credit. So when going through your credit report, a lender wants to know if you can manage your debt, are not too far into debt, and have the ability to pay back whatever you borrow.