What does borrower creditworthiness directly impact?

Borrower creditworthiness is a key factor in assessing a potential borrower's financial health and reliability in repaying a loan. It directly impacts the ability to secure a loan because lenders closely evaluate a borrower's credit history, credit score, income level, and overall financial behavior before making a lending decision.

When a borrower has a strong creditworthiness profile (high credit score, stable income, etc.), they are typically seen as a lower risk, which makes it easier for them to obtain loans. In contrast, borrowers who have poor credit histories or lower scores may find it difficult to secure loans, as lenders may view them as high-risk borrowers likely to default. This clear connection between creditworthiness and loan approval illustrates why the ability to secure a loan is closely tied to how a borrower is perceived in terms of their financial reliability.

In contrast to this, factors such as interest rates, the operational size of banks, and the availability of financial technology options are influenced by broader market conditions and institutional policies rather than the individual creditworthiness of a borrower directly.