Qualifying for a loan in the United States is not just about having a job or income. Lenders follow a structured evaluation process to determine whether a borrower is financially reliable and capable of repaying debt.

Many borrowers make costly mistakes when taking out loans. One common error is borrowing more than necessary, leading to long-term financial strain.

Credit scores are one of the most important factors lenders use when approving loans. A credit score is a numerical representation of your creditworthiness, usually ranging from 300 to 850.