When you apply for a credit card or auto loan, the company from which you are seeking credit checks your credit report. They get a copy of it from one or more of the three major consumer reporting agencies.
In addition to your credit report(s), the lender will most likely use a credit score in their evaluation of your application. There is more than one type of credit score, but FICO® Scores are used in 90% of lending decisions.
Most lenders also consider supplemental information from your application, such as your income. This is in addition to your FICO® Score.
Each lender has their own process when reviewing credit applications. Some only want to lend to the least-risky consumers, and others will work with consumers who have less-than-ideal credit histories.
When reviewing your credit application, the items lenders generally pay the most attention to are:
To see if you have paid your bills on time
To see if you are able to reasonably take on more debt
Such as bankruptcies, judgments and liens
Including new accounts and credit inquiries by other lenders
To determine your ability to make required payments