This video explains how Ability factors in lending decisions—how lenders determine whether a loan is affordable based on your financial situation. It covers common reasons applications may be declined, including:
Income Insufficient for Amount Requested: Why lenders compare income to loan size and how to improve affordability.
High Use of Credit: How credit utilization impacts perceived risk and tips for lowering balances.
Insufficient Collateral Value: Why collateral matters for secured loans and what to do if value falls short.
Excessive Trade Lines: How too many open accounts can signal risk and ways to simplify your credit profile.
Unable to Verify Income: Why accurate documentation is critical and how to provide clear proof of earnings.
