What are the different criteria considered in granting personal credit?

When granting personal credit, lenders typically consider several key criteria, including credit score, which reflects an individual's creditworthiness based on their borrowing history. They also assess income and employment stability to ensure the borrower can repay the loan. Additionally, lenders evaluate debt-to-income ratio to determine the proportion of income that goes toward existing debt obligations. Other factors may include the borrower’s financial history, such as previous defaults or bankruptcies, and the amount of collateral offered, if applicable.