Creditworthiness is a measure of how likely a person or business is to repay borrowed money. Lenders, like banks or credit card companies, assess creditworthiness by looking at factors such as credit history, income, and existing debts. A good credit score indicates that a borrower is responsible and reliable, making it easier to secure loans or favorable interest rates. When someone applies for a loan, their creditworthiness plays a crucial role in the decision-making process. If a borrower has a strong track record of paying bills on time, they are seen as a lower risk. This can lead to better financial opportunities, such as lower rates on mortgages or car loans, ultimately benefiting their financial health.