Question

Why are job security credit history, and debt-to-Income ratio so important to lenders when considering people for loans?

Answer 1

Answer:

Step-by-step explanation:

They are very important because they show how likely the person being loaned to is going to pay the money back.

Answer 2

Explanation:

Job security is how likely an individual will keep his job, this factor will determine if the person has a constant and secure money income. Credit history is the individual's ability to repay debts and it demonstrates how responsible the person is. Finally, the debt to income is how lenders measure the individual's capacity to manage their payments.

Therefore, all these factors are important because they all measure the individual's capacity to pay their debts.

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