What does the term "creditworthy" refer to?

The term "creditworthy" refers to the assessment of an individual's or entity's ability to repay borrowed money based on their financial history and reliability. While the chosen answer suggests being "qualified to have credit," this interpretation aligns with the broader understanding of creditworthiness.

Creditworthiness typically encompasses several factors, including a person’s credit history, payment behavior, and overall financial stability. A creditworthy individual is generally seen as likely to fulfill their financial obligations. This means that lenders view them as reliable candidates who are less likely to default on loans or credit accounts. Hence, the correct answer reflects the essence of being considered for credit due to these attributes.

In contrast, being "eligible for a loan," while related, doesn't fully capture the nuances of consistent payment reliability and history that contribute to creditworthiness. Having a good reputation for payments is indeed part of what makes someone creditworthy, but it is too narrow, focusing solely on reputation rather than the comprehensive evaluation of creditworthiness. Finally, possessing sufficient income for credit is a factor that can contribute to someone's overall financial profile, but creditworthiness also includes past behaviors beyond just income level. Thus, the chosen answer encapsulates the foundational understanding of the criteria for being deemed creditworthy.