What factor is commonly considered when determining someone’s creditworthiness?

Credit history is a critical factor in determining someone's creditworthiness because it reflects a borrower's past behavior regarding credit and debt repayment. Lenders assess this history to evaluate the likelihood of future repayment. A solid credit history typically indicates that an individual has demonstrated responsible credit management, such as making payments on time and keeping credit utilization low.

Credit history includes information like previous loans, credit card accounts, and their payment status, as well as any negative marks like bankruptcies or defaults. A clean credit history generally leads to a higher credit score, which directly impacts the terms and conditions lenders might offer, such as interest rates and credit limits.

While age of the applicant, income level, and employment status can provide context about a person's financial situation, they do not directly measure how reliably a borrower has managed credit in the past, which is fundamentally what credit history does. Hence, having a strong credit history is often the most significant indicator of creditworthiness.