Affordability is a measurement used by lenders to assess whether you can afford to repay the amount you’re wanting to borrow, in addition to your current financial commitments.
Lenders look at various factors to assess affordability, including:
Income: How much money enters your accounts each month
Account usage: How you use your money across your accounts
Outgoings: the payments you make each month
Savings: whether you’re able to put money aside for the future
Employment status: make sure it’s correct and up-to-date
Affordability v creditworthiness: Affordability looks at whether you’re able to afford a credit card or loan, in addition to your current financial commitments. Creditworthiness assesses how likely you are to actually pay it, based on how you’ve used credit in the past. Creditworthiness & affordability are both key elements of eligibility.
The affordability insights you see on TotallyMoney do not impact your credit score, or Borrowing Power.