Each lender has an established underwriting formula and typically includes factors such as your credit history, your current debt-to-income ratio, and your income and expenses in determining your creditworthiness and what offers you qualify for.
Lender Criteria
One thing to keep in mind is that for unsecured loans, the personal credit history of the applicants plus other factors like income vs. debt are the main drivers of the offers that a customer will see. Because unsecured loans are riskier for the lender, the rates can be higher, especially if the customer’s credit profile is on the lower end of the credit spectrum. Some of the main things they look at include:
The customer’s credit score
Income vs. Outstanding debt obligations plus what the customer wants to borrow
Employment History
Payment History
Payment history accounts for 35% of a borrower’s FICO score and is the most important factor for lenders. (see What's In My FICO Scores?)
Large amounts of outstanding debt are another significant concern to lenders.
A long track record of responsible credit use is good for your credit rating.
Lenders want to see that their clients have experience using multiple sources of credit—from credit cards to car loans—in reliable ways.
source: Investopedia
Each lender has its own criteria that they have honed over many years spent lending to customers. Each customer's credit score helps the lender assess the risk associated with lending to that customer and the likelihood that the customer will repay the loan. Based on that, along with additional factors like payment history, income, and other debts, the lender will decide if they can make an offer, and if so, what kind of terms they can offer. Generally speaking, most lenders categorize credit scores as follows: