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How does a lender decide that I am credit worthy?

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How does a lender decide that I am credit worthy?

Answered By Sophia Caylar, Editor


When applying for credit from a certain creditor, you give them permission to view your credit report. They will base their decision on the shape of your credit report using a formula they use.

Another way creditors base their decision is through adding up all your monthly bills and having it divided with your gross income.

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