Credit worthiness is the main thing lenders look at when examining a loan application. Lenders want to be sure the person funds are being lent to is likely to pay the loan back. A person may not need an excellent credit score, but the credit report should show a commitment to repaying debt.
Income plays a role as well. How much money a person earns factors into his/her ability to make necessary payments. A person who earns $30,000 a year would be a fine candidate for a $1,000 loan since he/she earns more than enough to pay the funds back.
Currently monthly expenses also factor into decisions about approving a loan. Someone who is already obligated to pay an auto loan, monthly rent, car and health insurance, and $200 in credit card payments already has a significant amount of income already obligated. Obligations are not going to be overlooked.
Additional sources of income won’t be overlooked either. If $5,000 in nontaxable gifts are common from, say, a parent, then the lender can take this figure into consideration. How much the stated figure is seriously considered depends on the lender’s policies.
Of course, collateral is considered as well. Collateral absolutely backs up a loan request.