Understand Why a Creditor Favors Positive Net Worth: Reduced Risk Now
Why Creditors Love a Positive Net Worth: Less Risk, Better Deals A positive net worth is a powerful asset when seeking credit. It signals financial responsibility and reduces the lender's risk. But what exactly is net worth, and why is it so important to creditors? Understanding Your Net Worth: A Simple Explanation Your net worth represents the difference between your assets (what you own) and your liabilities (what you owe). Assets include your house, car, savings, investments, and other valuable possessions....