How Do Banks Decide to Lend Money?

Banks decide who gets a loan like you choose who gets to borrow your toys. They look at how likely the person is to pay back the money and whether they have enough money or job stability to do it. If someone has a good track record, the bank might say, 'Sure, take that toy!'

Take the quiz →

Examples

  1. A kid with a job and good savings gets to borrow money from the bank.
  2. A person who pays bills on time is more likely to get a loan.
  3. A student without a job might be denied a loan.

Ask a question

See also

Discussion

Comments (0)

Recent activity

Nothing here yet.

Categories: Economics · banking· loans· credit