Which of the following factors affects a borrower's creditworthiness?

The applicant's previous repayment history is a crucial factor that significantly affects a borrower's creditworthiness. This history provides lenders with insights into how reliably an individual has managed their debt obligations in the past. A solid repayment history indicates that the borrower is likely to honor their commitments and repay future loans on time, making them a lower risk for lenders.

Lenders generally look at several components of credit history, including the number of missed payments, defaults, and the overall debt-to-income ratio. A strong record of on-time payments bolsters a borrower's credit score, which is routinely used as a key metric in assessing creditworthiness. Therefore, a good repayment history not only establishes trust with lenders but also can lead to better loan terms such as lower interest rates or higher borrowing limits.

While the types of assets owned, current interest rates, and the purpose of the loan may have implications for the borrowing process, they do not directly evaluate the reliability of the borrower as thoroughly as their repayment history does. Assets can provide security for loans but do not guarantee payment, and interest rates are more a reflection of market conditions rather than individual credit risk. The purpose of the loan may influence its approval but does not directly assess an individual's credit reliability. Thus, previous repayment history remains