Credit Score and Current Debts
Your credit score is based on your current borrowings and repayment history. The lenders use your credit score to determine your creditworthiness. Essentially, how you have managed your credit in the past helps the lender determine if you should also get a mortgage.
Your credit score is based on many different factors. Your loan and credit card repayment history, your total current borrowings, and how many inquiries you have on your credit bureau all factor into your score. The higher your score, the better chances you have. The lower your score, and you may have problems getting an approval. Generally, the lenders will want to know why you have a low credit score, and how you might change that trend moving forward.
The lender will also consider what you are borrowing at the time of your application. If you are carrying a balance on a credit card or line of credit, the lender will add a payment in for those balances which will increase your debt servicing ratio. If you have a car loan or personal loan the lender also adds in those payments.