A lender will refer to your credit report to see if you are the type of person who will repay the loan, in full, within the time specified. While searching your credit report, lenders are looking for information that suggests you pay your bills on-time. Even if your credit report has up to two late credit card payments or one late installment payment, you can still have a credit score that is good, meaning you may be likely to still get a loan. However, if your credit report shows late payments of 60 days or more, late mortgage or rent payments, or outstanding debts (such as judgments or liens), you may fall into the bad credit category which will make it hard for you to receive a loan.
A lender will also look at your existing debt to make sure that repaying the loan you are about to take on is within your means. Most lenders say that non-mortgage debt payments should not exceed 10-15 percent of your take home pay each month. If your debts are currently exceeding this percentage, you may want to pay some of the remaining debts off before you apply for another loan.
Lastly, every time someone other than yourself requests your credit report, a note of that request is made on the report itself. If there are a large number of requests within a short period of time, the lender may think that you are applying for a loan because of financial difficulty or you are taking on more than you can handle.