Question

You are a loan officer at a bank. An applicant comes to you for a $5,000 loan. Explain why you would want to know that person’s credit history?

Answer 1

you would want to be sure that the person is financially responsible and that he or she usually makes on-time payments. you would also want to know that the person can afford to make the payments each month, and that he or she does not owe too many other lenders.

Answer 2

If the borrower has bad credit history he or she might not be likely to pay the loan back or pay is back late which is going to cause more problems. hope this helps